Financial Statement Fraud

Exercise Three

From your reading of the article regarding Betty Vinson and WorlsCom, Inc., answer the

following questions in the space provided

What was the accounting principle that Besty violated in the second and

successive quarters of the financial statement fraud? Write out the fraudulent

journal entry.

What pressures did Betty face in dealing with this situation?

What was the turning point in Betty's actions that clearly made her a co$-$

conspirator?

What is the waming to each of us as employees from this cautionary tale of

fraud.