Auditing and Accounting Cases 4th Edition by Deborah Freier,Jay Thibodeau

Exercise 5

Consult Paragraphs 1-2 of Ethics Rule 102 (ET 102). Next, consider the role of the employees in the Property Accounting group at WorldCom. If the employees were CPAs and suspected that the entries being proposed by management were fraudulent, do you believe that the accountants had a responsibility to report the behavior to the audit committee? Why or why not?