Accounting is a profession that is vulnerable to ridicule because of the faith it requires from clients. When an accountant makes an error, he not only damages his own reputation but also impacts thousands of other people as well. WorldCom’s downfall began with one accountant who made an entry he knew was wrong and the result spread to the entire company of innocent bystanders. David Meyers’ false entry destroyed a company, but he was guilty only of being a victim of his circumstances. He was an example of the common belief that people are not born bad, but are influenced by their environment to become bad. Meyers was a victim of his surroundings and never would have committed fraud without external manipulation; the choices he made by his …show more content…
Sullivan had each of the ingredients of a fraud triangle and used Meyers as a pawn to take advantage of his situation. The negative profits WorldCom was experiencing pressured Sullivan into reporting false numbers to WorldCom’s investors; he had the opportunity to tamper with the numbers without directly touching them; he rationalized his actions because he thought that WorldCom would produce profits in the future and undo the false entries. When presented with the issue of WorldCom’s falling profits, Sullivan compelled Meyers into manipulating the numbers in order to save Sullivan’s name. Meyers was given two choices: obey Sullivan and act against GAAP and the law, or do the correct accounting procedures and risk WorldCom’s economic status. Meyers chose the supposedly least harmful option primarily because he believed Sullivan’s prediction about future profits. After letting his morals be overridden by his obedience to his boss, Meyers did not realize his actions were irreversible until it was too late. Meyers would not have acted against what he knew was right unless he felt he had no other choice. Without the pressure from Sullivan to alter the entries, Meyers would have reported WorldCom’s financials correctly, showing negative profits but saving the company from destruction. After the incorrect accounting had been used for long enough to damage WorldCom irrevocably, …show more content…
After the fall of WorldCom exploded on international news, David Meyers was a household name and his reputation was destroyed. The accounting world was damaged by the mistrust Meyers had caused among clients everywhere. His professional colleagues and the thought of disappointing his family and friends compelled Meyers to undo the havoc he had wreaked. Accountants everywhere wanted Meyers to explain himself and his actions and confirm that he did not represent the masses. He began traveling to universities and colleges speaking about the importance of doing what is morally right and wrong despite the circumstances. He brought the dark side of the accounting profession into the light, and instead of reinforcing society’s distrust of accountants, David Meyers became an example for accountants and clients everywhere. His actions proved that mistakes happen, but that the accountants who make those mistakes are imperfectly human. The pressure from his associates to make a beneficial choice about the direction he would take his mistake pushed Meyers to make an impact on clients and employees of the accounting