Embattled auditor Arthur Andersen LLP said Tuesday night its work for WorldCom Inc., which announced earlier that it had uncovered improper accounting of almost $3.8 billion in expenses, complied with Securities and Exchange Commission standards.

Andersen audited WorldCom's financial statements for 2001 and for first quarter of 2002.

"It is of great concern that important information about line costs was withheld from Andersen auditors by the chief financial officer of WorldCom. The WorldCom CFO did not tell Andersen about the line cost transfers nor did he consult with Andersen about the accounting treatment," the company said.

Andersen said it told WorldCom that the company's 2001 financial statement "should not be relied upon."