Worldcom Operational Review Project-2

Worldcom Operational Review Project-2 - Introduction...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Introduction WorldCom, the leading US telecommunications giant, WorldCom during the 1990s was instrumental in legal and regulatory changes that led to the breakup of the AT&T monopoly of American telephony and ushered in the competitive long-distance telephone industry. WorldCom now named MCI, recently emerged in June 2002, Securities and Exchange Commission (SEC) lawyers filed civil fraud charges against WorldCom for what would later be estimated at over $9 to 11 billion worth of accounting errors. Objectives Planning Phase Work Program
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The responsibility of the planning phase is to gather the information of the different areas where it suggests discrepancies on activities. The following is the planning work program for operational review for the WorldCom case. Organizational Structure Determine an organizational chart with the specific functions of each department a. Does an Organization Chart available? b. Document Duties and Responsibilities of each employee. Analyze the Corporate culture of the organization, the morals, the value and the beliefs of the organizations a. How employees feel about their cultural environment, and their expectations. b. Determine what are the authority and the responsibility clearly and identify and understood by all personal. Functions of Board of Directors comply with the organizational strategy and decision making for the organization goals. a. Are members familiar with the internal control and structure of the organization? b. Is there any contact or any ways of communications between the board members and staff? Internal Control Review the Company policies and procedures for each of the different areas and how those procedures are applied.
Background image of page 2
Review the use of computer programs adapted to the type of business and satisfies the control of the procedures. Analyze the position of internal audit and the Implementation of Internal control to prevent and detect fraudulent activities. a. Is there segregation of duties for the diverse positions b. Review the availability and accessibility to search for information Operating Procedures Analyze the organization based principle economy, efficiency and effectiveness of operations Customer Service, procedures to follow Analysis of the Telecom Industry operations a. Their On-Net and Off-Strategy b. Procedures on using lines. Effectively of Integration of the computer system Financial and accounting Practices Are Accounting Practices and GAAP policies followed? a. Dependability’s of Financial Reports b. Gather for Financial information Analyze the irregularities of financial records overstating revenues a. Capitalized Expensed b. Released of Accruals c. Managing the Line cost E/R Ratio Work Program Phase
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The work program phases are the steps that we will be following to proceed with the review process. The activities are determined from the planning phase which will help us find the information that we need to discover in order to perform an audit. Corporate Culture
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 16

Worldcom Operational Review Project-2 - Introduction...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online