CLINTON, Mass.-WorldCom Inc. said it plans to restate its financial statements for 2001 and the first quarter of 2002 as a result of an internal audit of the company’s capital expenditures that showed up to $3.8 billion in cost transfers were not made in accordance with general accepted accounting principles. Without the reported transfers, the company would have reported a net loss for all of last year and the first quarter of this year.
WorldCom said it has notified recently engaged external auditors KPMG L.L.P to undertake an audit of the company’s financial statements, and notified previous auditor Andersen L.L.P., which has audited the statements in question.
In connection with the investigation, WorldCom fired Scott Sullivan, its chief financial officer, and accepted the resignation of senior vice president and controller David Myers.
