Webclass 80: OPEX as CAPEX fraud case

Q1. When her boss, the CFO of WorldCom, found out that the head of internal audit was reviewing journal entries and capital expenditure, did he encourage her?

Q2. Why did Eugene Morse decide to work at night in a dark room?

Q3. Was the corporate finance director, general accounting director and accounting directors aware of why they were posting operating expenses as capital expenditure?

Q4. What was the initial reaction of the Corporate Controller when he found out that audit was spending time on capital expenditure?

Q5. Why might the auditor like to work with some junior-ish accounting people?

Q6. If operating expenditure is being booked as if it is capital expenditure, what might the journal entry look like?

Q7. How are operating expenses usually booked?

Q8. On a dashboard of OPEX to CAPEX, why might we want to show the total P&L movements for the period?

Q9. When we are trying to identify transactions that debit operating expense and credit assets, why might we first want to list out the accounts on one line per journal entry?

Q10. In the QLIK example, why did we create the ZF_BSEG_DMBTR_NEG field?