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Graduate Accounting Capstone - Accounting and Audit Enforcement
Finance & Accounting
Pages 6 (1506 words)
Accounting and Auditing Enforcement Name of the Student Name of the Professor University Date Table of Contents Table of Contents 2 Introduction 3 SOX Regulations in Public Healthcare Organizations 4 SOX Regulations in For-Profit and Not-For-Profit Healthcare Organizations 4 SEC Investigation 6 The Role of HealthSouth Corporation’s Auditors 8 SOX Regulations 8 Recommendations 9 References 10 Introduction The public healthcare company that have been chosen in this study is HealthSouth Corporation.
It provides high level of care to the patients for recovery from conditions like stroke, orthopaedic and neurological disorders, brain injury, spinal cord injury, cardiac and pulmonary conditions. HealthSouth Corporation was found to be involved in corporate accounting scandal. The Founder, who was also the Chairman and CEO of the company, was accused of influencing the employees to manipulate the figures in the financial statement and exaggerate the earnings for meeting the expectations of the stockholders. He was the first executive to be caught in the Sarbanes Oxley Act for manipulating the financial returns of the company (Will, Handelman, & Brotherton, 2012). Richard M. Scrushy was accused of conspiracy, money laundering charges, securities fraud and charges of overstating the company’s earnings by approximately $ 3 billion (Forbes, 2013). The federal investigators stated that the company intentionally overstated the earnings in the financial statement for meeting the estimates of the analysts. At the same time the company had to make efforts to hide the accounting fraud attempt from auditors. ...
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