WorldCom boss tried to axe audit budget

'If we have no audit, then we can't get into trouble'... genius strikes too late to save Ebbers and Co...

WorldCom's former CEO Bernie Ebbers attempted to persuade his organisation to cut its internal auditing budget in half, shortly before he resigned from the company. The troubled data carrier refused Ebbers' proposal for a 50 per cent cut in its auditing budget but did slash it by 10 per cent. Ebbers resigned in April because of pressure over WorldCom's dire financial situation and questions over huge loans he had taken from the company. Some industry observers have said Ebbers' decision to try to reduce the company's audit budget was a sign that he did not want a deep probe into WorldCom's accountancy practices and that the organisation did not value the practice.