The Regents - University of California | Office of The President

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Cumulative effect of
accounting change (net of
income tax of $50 in 2000) – (85) –
Net income 4,013 4,153 1,501
Distib. on mandatorily
redeemable pref. Sec. &
other preferred div. req. 72 65 117
Net income applicable to
com. shareholders $ 3,941 $ 4,088 $ 1,384
81. Defendant Andersen provided an unqualified audit opinion as to
WorldCom’s financial statements for 2001, which includes the Consolidated
Statement of Operations. Andersen represented:
We have audited the accompanying consolidated balance
sheets of WorldCom, Inc. (a Georgia corporation) and
subsidiaries as of December 31, 2000 and 2001, and the
related consolidated statements of operations,
shareholders’ investment and cash flows for each of the
years in the three-year period ended December 31, 2001.
These financial statements are the responsibility of the
Company’s management. Our responsibility is to
express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with auditing
standards generally accepted in the United States. Those
standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial
position of WorldCom, Inc. and subsidiaries as of
December 31, 2000 and 2001, and the results of their
operations and their cash flows for each of the years in
the three-year period ended December 31, 2001, in
conformity with accounting principles generally
accepted in the United States.
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COMPLAINT