Financial Accounting Blog

Tuesday, October 21, 2003

Reuters reports on audit findings that AT&T underreported expenses in 2001 and 2002 in this
this MSNBC article. said two employees circumvented internal controls in the accounting of costs, and access and other connection expenses were understated by $125 million in 2001 and 2002.

Had the access expense been properly recorded, AT&T said it would have decreased its annual income from continuing operations for 2001 and 2002 by $32 million, or 4 cents a share, and $45 million, or 6 cents a share, respectively.