19. I have recently interviewed the DPA regarding the adjustments described above that the DLEA instructed him to make, and learned the following. a. In the normal course of closing the books for each quarterly reporting period, the DPA and his subordinates prepared the PP&E Roll-Forward based on documents and information provided from WorldCom field operations reflecting actual business activity. b. With respect to each of the adjustments described in paragraph 18 above, the DPA received no supporting documentation whatsoever, despite his requests to the DLEA for such support. Moreover, the DPA was directed to make these adjustments after the field offices' books had been closed for each quarter.

c.The DPA expressed concerns to the DLEA regarding the propriety of these adjustments, 20, Based upon my conversations with members of WorldCom's Internal Audit department, who have reviewed WorldCom's general ledger and journal entries, and my review of summary analyses they have prepared, the chart set forth below fairly summarizes the quarterly transfers from certain current expense line krusell broby 4 card iphone xs slim wallet case - cognac reviews cost accounts to certain PP&E capital expenditure accounts between April 2001 and April 2002, Figures expressed in the chart are rounded to the nearest million..

21. I have spoken to members of the WorldCom engagement team from Arthur Andersen, who participated in annual audits and quarterly reviews of WorldCom and who have advised me of the following, in substance and in part. a. Neither SCOTT D. SULLIVAN nor DAVID F. MYERS, the defendants, nor anyone else from WorldCom, disclosed to members of the Arthur Andersen engagement team, during the course of the engagement, that WorldCom had begun to capitalize third-party line costs. b. Neither SCOTT D. SULLIVAN nor DAVID F. MYERS, the defendants, nor anyone else from WorldCom, disclosed to members of the Arthur Andersen engagement team, during the course of the engagement, any of the journal entries summarized in paragraph 18 above.

c, Neither SCOTT D, SULLIVAN nor DAVID F, MYERS, the defendants, nor anyone else from WorldCom, provided to members of the Arthur Andersen engagement team, during the course of the engagement, a list of "top-side" entries -- entries made at the corporate level -- such as the transfers described in paragraph 18 above, as Arthur Andersen had requested, d, Neither SCOTT D, SULLIVAN nor DAVID F, MYERS, the defendants, nor anyone else from WorldCom, disclosed to members of the Arthur Andersen engagement team, during the course of the engagement, that WorldCom had changed its accounting krusell broby 4 card iphone xs slim wallet case - cognac reviews practices for certain line costs, namely that certain line costs had been capitalized rather than treated as an expense, even though Arthur Andersen had asked SULLIVAN and MYERS whether WorldCom had implemented any changes in accounting practices..

22. Other FBI agents have spoken to a partner at KPMG, who currently works in KPMG's practice advisory group and who is familiar with the accounting entries described above, which were implemented at the direction of SCOTT D. SULLIVAN and DAVID F. MYERS, the defendants. The KPMG partner advised them, in substance and in part, that there was no basis in accounting principles to capitalize such line costs as described in paragraph 18 above. According to this KPMG partner, the accounting treatment of line costs described above was not in accordance with General Accepted Accounting Principles ("GAAP").