Auditing and Accounting Cases: Investigating Issues of Fraud and Professional Ethics 3rd Edition by Jay Thibodeau,Deborah Freier

Exercise 2

Consult Paragraphs.03-.06 of AU Section 311. Comment about how your understanding of the inherent risks identified at WorldCom (in Question 1) would influence the nature, timing, and extent of your audit work at WorldCom.
Reference Question 1:
Consult Paragraph 9 of PCAOB Auditing Standard No. 5. Based on your understanding of inherent risk assessment and the case information, identify three specific factors about WorldCom's strategy that might cause you to elevate inherent risk.