Former Andersen partner who audited WorldCom says co kept entries hidden

Mel Dick, the engagement partner responsible for Arthur Andersen LLP's audit of troubled telecommunications company WorldCom Inc, said he had no knowledge that senior WorldCom executives were allegedly manipulating its accounts to boost profits.

In remarks prepared for testimony before the House Financial Services Committee, Dick said: "In performing our work, we relied on the integrity and professionalism of WorldCom's senior management, including Scott Sullivan, WorldCom CFO and David Myers, WorldCom controller, and their staff."

Dick headed the Andersen audit team that was responsible for auditing WorldCom's financial accounts.

He resigned his post at Andersen - which has been convicted of obstruction of justice by the US government for its Enron Corp audits - on June 1, just 24 days before WorldCom revealed its profit re-statement on June 25.

Andersen audited WorldCom's accounts for the period of its re-statement, but WorldCom replaced Andersen with KPMG earlier this year during the government's trial of Andersen for its Enron audits.

Committee lawmakers are trying to discover who authorised the entries and transfers which enabled WorldCom to improperly book its expenses.

"Let me state clearly and without any qualification that, prior to June 21, 2002, when Andersen was first contacted about this matter, neither I, nor to my knowledge, any member of the Andersen team had any inkling that these transfers had been made," Dick said.

Dick said his audit team "asked WorldCom senior financial management whether there were any significant top side entries (during its audits). On each occasion, management represented to Andersen that there were no such entries."

Dick is currently working as a chief financial officer for a clothing company.