Ethical, Fraud, and Legal Issues for Accountants 1. What factors in the World Com 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?

Ethical, Fraud, and Legal Issues for Accountants 1. What factors in the World Com 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?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter2: The Auditor’s Responsibilities Regarding Fraud And Mechanisms To Address Fraud: Regulation And Corporate Governance

Section: Chapter Questions

Problem 13CYBK

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Concept explainers

Fraud

Fraud in accounting is the planned manipulation of financial documents to make a false appearance of corporate financial health. Moreover, it includes an employee, accountant, or the company itself misleading investors and shareholders.

Question

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Ethical, Fraud, and Legal Issues
for Accountants
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?

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