Critical Thinking Assignment #2

 FRAUD CASEBOOK 

WorldCom 

Read the following articles or other related articles regarding the WorldCom case and then answer the questions below: 

Sources: Katz, David M. and Julia Homer, “WorldCom Whistle-blower Cynthia cooper,” CFO Magazine (February 1, 2008).  

Pulliam Susan and Deborah Solomon, “How Three Unlikely Sleuths Exposed Fraud at WorldCom,” The Wall Street Journal (October 30, 2002).  

Cynthia Cooper, Extraordinary Circumstances: The Journey of a Corporate Whistleblower (Hoboken, NJ: Wiley, 2008).  

Short Answer Questions 

1. What was Cynthia Cooper’s position at WorldCom? 

2. Approximately how much value was lost as a result of the WorldCom collapse? 

3. Which WorldCom employee initially confessed to the fraud and what was his position? 

3. List Cynthia Cooper’s two colleagues who assisted her with uncovering the WorldCom fraud. 

4. Was there ever a concern over the discovery of the investigation and possible destruction of evidence? 

5. Did complicated computer programming and analysis play a role in the investigation? 

Discussion Questions 

1. From an ethical perspective, did Cynthia Cooper have to report this fraud? Why or why not? 

2. What ethical issues, conflicts of interest, and noncompliance with corporate policies and procedures might Cynthia Cooper have faced in the context of her investigation? 

3. What alternative courses of action, if any, might you have suggested for Cynthia Cooper and her colleagues given the framework of appropriate ethical conduct?