Reference no: EM131476003

1. What factors in the WorldCom case support the conclusion that CEO Bernie Ebbers knew about the financial statement fraud? What factors support his defense that he did not know about the fraud?

2. If the fraud had not been detected when it was, how long do you think it might have continued and how would it have ultimately been revealed?

3. How could the fraud at WorldCom been prevented?

4. Which one person do you think is responsible for the fraud being uncovered? Please explain your reasoning.

5. Six WorldCom employees were convicted is the case. Which of these do you believe is the most responsible for the fraud? Why?

6. If Sarbanes-Oxley Section 404 had been in place before the fraud occurred, to what extent do you believe it would have prevented or reduced the fraud?

7. Compare and contrast the degree of moral courage established by internal auditors Cynthia Cooper at WorldCom and Diedre Dendanto at Sunbeam.

8. The audit form Arthur Anderson claimed they followed Generally Accepted Auditing Standards and were misled by WorldCom executives, yet they settled the investor lawsuits and two partners were sanctioned. What audits test to do believe Anderson could have performed to detect the fraud?