WorldCom Whistleblower Speaks
to Professional Issues Class

The Professional Issues class meets each spring for three weeks after students finish their internships. The students attend class each evening four nights a week from 4 to 7 p.m. The class examines current issues across all disciplines of accounting including managerial, audit, tax and financial reporting. Most of the students arrive in the class after internships with public accounting firms.

Many of the recent changes in the profession revolve around financial reporting, and as such the class spends a larger portion of its time on financial reporting issues. In spring 2008, the class dedicated time to the expanding role of IFRS in financial reporting. Michael Kraehnke provided an overview of IFRS from KPMG’s national office to the students. KPMG had just agreed to loan Michael to the International Standards Board in London, for a two-year stint. The class also spent nearly a full week examining proposed changes to the financial reporting model.

The highlight of the class may have been Cynthia Cooper’s visit. Cynthia was the internal audit vice-president at WorldCom who aided in bringing the fraud to light. She visited campus as part of our Ethic Initiative discussing her new book, “Extraordinary Circumstances,” on the demise of WorldCom. Students in the Professional Issues class read the book as part of a class assignment. We then had a private session with Cynthia prior to her public session. Students were able to ask Cynthia a number of questions, and we were able to discuss some of the details that were too in-depth for her public discussion. The students loved the chance to interact with her and most left with a much better appreciation for the ethical challenges they may face in the future.