Refer to the Focus on Fraud (Pg616) feature WorldCom and Unusual Adjusting Entries, which explains how WorldCom executives used unusual journal entries to perpetrate their fraud.

a. What is unusual about the journal entry in this Focus on Fraud feature?

b. If confronted, do you think that management at WorldCom would have some reasonable, or at least plausible, explanation for the entry? Explain.

c. Imagine yourself as an early career auditor who discovers this unusual entry and inquires about it with someone at the client. What factors might cause you to lack professional skepticism in evaluating the clients explanation?