Week II – Lessons Learned

WorldCom Organization

• Corporate Shared Services
• 4 Divisions:
  • North America [including: Canada], South America
  • Asia/Pacific
  • Eastern/Western Europe
  • Africa
• Role of:
  • Board of Directors
  • Audit Committee
  • Internal Audit
    • Technology
    • Financial
    • Operational
  • External Audit [Arthur Anderson]
  • C-Level Suite [i.e. CEO, CFO, CIO, COO, etc.]
• Big 4 [EY, PwC, KPMG, D&T] Services Rendered:
  • Audit Assurance
  • Taxes
  • Legal
  • Actuarial Services
  • Information Security
    • Due to Enron / WorldCom Big 4 cannot cross-sell
  • Corporate Fiduciary Responsibility
    • Role of Compliance / Operational Risk
    • Role of Audit
    • Role of General Counsel [Legal]
    • Todays Role of C-Level Suite
      • Post Sarbanes-Oxley, CIO signs off on Annual Report