SEC eyes WorldCom’s accounting

The Securities and Exchange Commission is looking into the accounting practices of yet another long-haul carrier. In a letter dated March 7, Clinton, Miss.-based WorldCom received a request from the SEC for documents and information in several areas.

Those areas include: a third-quarter 2000 pre-tax charge associated with wholesale accounts; disputed customer bills and sales commissions; accounting policies for goodwill; organizational chars and personnel records for former employees; loans by WorldCom to officers or directors; the integration of the computer systems of WorldCom and MCI; WorldCom’s tracking and review of analysts earnings estimates; and federal or state agency investigations of WorldCom.

The request was revealed on the same day Qwest Communications said an informal inquiry into its own accounting practices had been opened by the SEC.

In a statement, the company said it believes all of its policies and practices have complied and continue to comply with accounting standards and laws. The company said it will cooperate with the SEC inquiry.

--Toby Weber, staff writer