The Accounting Scandal of HealthSouth HealthSouth Corporation is based in Birmingham‚ Alabama‚ it is the largest provider of rehabilitative health care services. It operates in 26 states in the United States of America and in Puerto Rico. HealthSouth provides rehabilitation hospitals‚ long term heightened care hospitals‚ outpatient rehabilitation satellite clinics and home health agencies. HealthSouth was found by Richard Scrushy in the year 1984 and was called
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The Sarbanes-Oxley Act of 2002Introduction2001-2002 was marked by the Arthur Andersen accounting scandal and the collapse of Enron and WorldCom. Corporate reforms were demanded by the government‚ the investors and the American public to prevent similar future occurrences. Viewed to be largely a result of failed or poor governance‚ insufficient disclosure practices‚ and a lack of satisfactory internal controls‚ in 2002 George W. Bush signed into law the Sarbanes-Oxley Act that became effective on
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recording $5‚500 that were received from a customer and planned to steal the money to buy a new cell phone for himself. This action is an example of error. a. True b. False 2. What key piece of legislation was passed in response to corporate accounting scandals by Enron‚ WorldCom‚ and others? a. Sarbanes-Oxley Act. b. 1933 Securities Act. c. 1934 Securities Exchange Act. d. Regulation Fair Disclosure. 3. Internal controls represent plans to: a. Safeguard the assets b. Continually improve the efficiency
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not the case‚ a large part of Enron’s profits were made of paper. This was made possible by masterfully designed accounting and morally questionable acts by traders and executives. Deep debt and surfacing information about hiding losses gave the company big problems and in the late 2001 Enron declared bankruptcy under Chapter 11 of the United States Bankruptcy Code. The Enron scandal‚ revealed in October 2001‚ eventually led to the bankruptcy of the Enron Corporation‚ an American energy company
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Peregrine Financial Group- Case study Last July 2012‚ a new financial fraud came out and hit the news headline‚ déjà vu‚ perhaps of other famous scandals‚ but not. This time a medium size financial institutions‚ name “ Peregrine Financial Group Inc” accused of shortfall of funds for around $200 million‚ where its CEO‚ Russell Wasendorf managed to misstated financial record for over 20 years‚ and finally in July 2012 filed for Bankruptcy. CEO‚ Russell Wasendorf‚ was no different than others high
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FINANCIAL ANALYST: THE EXPERT OF ECONOMIC AND ACCOUNTING Quyen Chu San Highline Community College English 205 Feb 4‚ 2012 CASE STUDY : THE BOOK OPENS THE DOOR Walking around the Phu Tho bookstore in Ho Chi Minh city‚ I decided to look for an interested book to bring along with me to America. Numerous questions came in my mind “What do I need? What is that book about?” Accidently‚ I went to the case containing full of financial and investment books. A purple small book with the phrase
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Limited (GC) is an example of what may occur when there are failures to properly audit financial statements and internal controls. This scandal happened around the same time as the Enron scandal. In early 2002‚ the GC bankruptcy was the fourth largest in the U.S. history. In 2005‚ it settled with the SEC‚ having been determined that it did not comply with numerous accounting laws. ABOUT THE COMPANY GC‚ founded in 1997 by Gary Winnick‚ was a telecommunications company with broad ambitions to rapidly expand
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Assignment Content 1. Introduction Page 1~3 2. The corporate scandal Page 4~5 3. The scandal methodology Page 6~7 4. The firm hide their accounting scandal Page 8~9 5. The scandal effected Page 9~10 6. How the scandal has affected Page10~12 the accounting profession Page 7. Summary Page 12 8. Recommendations
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change in overall management. * Scrushy was also nailed for not returning a $25 million loan he had received as an executive stock-purchase plan on time‚ and eventually paid it in stocks instead of cash like it was planned. * A lot of the scandal had to do with Scrushy’s need for self-affirmation and lead the company as if he was the king of an
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to its clients. Later‚ with the invention of computers‚ Andersen’s engineer named Joseph Glickauf illustrated that computers could be utilized to automate bookkeeping. Through bookkeeping automation‚ Andersen’s firm became the most outstanding accounting firm in America. Their business exploded due to the increased demand for information technology in the 1970s. During that period‚ business consultation became the chief revenue earner in the Andersen’s firm. The growing consultation business created
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