Cynthia Cooper and Worldcom

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Case 2: Cynthia Cooper and WorldCom (Ethics) 1. Describe the ethical issues faced by: a. Cynthia Cooper – Like Cynthia stated in the article, “She loved her job” , she was consumed for weeks with what the right decision was. She knew that if she spoke up about her findings 10’s of thousands of people could lose their jobs, their savings and their stock options. On the other hand Cynthia knew she had a responsibility to the company’s shareholders and her own moral conscious. b. Bernie Ebbers – I feel that Bernie was one of those individuals who didn’t mean to get caught up in the financial snares of corporate America. It sounds as if he started out with very noble intentions but quickly got wrapped up in living the life of a CEO. Bernie knew what was going on but chose to say nothing. His moral compass was focus so much on self fulfillment that he lost sight of the repercussion of what his actions would mean to those around him. c. Scott Sullivan – The fact that Mr. Sullivan asked Cynthia and team to hold off on reporting their findings and that he would take care of it next quarter leads me to believe he knew what was going on all along. I believe that Scott really thought that he could take care of it next quarter, shifting funds or firing Cynthia and her team, had Cynthia had taken his advice and held off she may have found herself and her team on the chopping block and facing federal charges. 2. Using some sort of graphic, Compare and contrast Cynthia Cooper’s actions with IIA guidance. Where did Cynthia violate IIA ethical standards? “Although it was not the internal audit department’s duty, Cooper decided that she and several others in her division would investigate the company’s financials on their own, performing what essentially would be a series of mini-audits. She did not mention that task to any of the higher-ups at WorldCom;

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