Here is the requirement about the fraud detection, please be serious to my work, thank you.

Fraud Detection & Deterrence View the Aaron Beam video and research the Healthsouth fraud. Write a three-page paper identifying 3 or more signs (from the seven signs book) that caused this fraud to occur. What controls or programs would have reduce the risk at Healthsouth? Here are 7 signs in the book: 1. 2. 3. 4. 5. 6. 7. Pressure to maintain those numbers Fear and silence Young' Uns and a bigger-than-life CEO Weak board Conflicts Innovation like no other Goodness in some areas atones for Evil in others Requirements: 1. 12 Font, double space, no extra line gap. 2. List the work citation. Topic Assignment Grading Course: Name Topic Yours Name Professor's Name [optional] University 1 Topic HealthSouth Accounting Frauds HealthSouth, a well-known United States company that run its business in public healthcare services. It offers rehabilitation hospitals for patients who suffer with physical disabilities due to incorrect medical treatments or for critical conditions. In 2003, HealthSouth has recognized as one of the massive accounting fraud that might lead it to bankruptcy. After this condition, Company's share fell from $30.56 to $0.40 dramatically and it was worst situation for investors who invested their millions. The fraud was not introduced in 2003 even it could have detected earlier because it was already there for several years since 1990's but did not noticed. Financials reports had manipulated over the years so that to meet the investor expectations and showed the company in profits in order to attract more investors and controlled the stock price as well for better common stock and trading opportunities, Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. In 2002, HealthSouth was noted for accounting fraud when its CEO Richard M. Scrushy sold $100 million stock in few days before Company passed through a huge loss. In U.S. Securities and Exchange Commission (SEC) investigation, Company was found as guilty in an accounting scandal where it has mentioned incorrect earnings of $1.3 billion in its financial statement and it was overstated. In result, Scrushy was charged for accounting fraud and sued by HealthSouth investors and asked to pay overall $2.8 billion, Ethics and Fraud at HealthSouth: Lessons from Inside a Corporate Meltdown. Hence, this was a complete disregard of moral and corporate ethical values which was intentional and was in favour of wealth and greed by Scrushy. Additionally, Scrushy has also made pressure to few other employees as well to perform the fraudulent action. There was no professionalism and nothing demonstrate a commitment toward diligence in the firm's performance even it must have the duty of each executive of the firm to ensure the ethical accounting system. There was no integrity in performance of the financial statement 2 Topic assignment and reasonably it was incorrect that exhibited wrong figures of profits i.e. $1.4 billion and represented more than 10% of the company's total assets, Ethics and Fraud at HealthSouth: Lessons from Inside a Corporate Meltdown. Number of evidences obtained against Company like; financial statement fraudulent, stock selling, where firm's financial statement mentioned overstated earnings which was even greater than its paid tax. There was no objective and confidentiality maintained in information transformation as fraudulent was known to many executives but they were not speaking because of CEO's course of action and following the orders without even making any complaint against anything which they have noticed, Ethics and Fraud at HealthSouth: Lessons from Inside a Corporate Meltdown. HealthSouth Accounting Fraud Signs When Richard Scrushy, CEO and co-founder of the Company instructed senior account executives to fix the problem and then accountants changed figures in financial statements and meet the expectations however, actual figures were below the expectations. So, this was the first sign of fraud i.e. 'Pressure to maintain those numbers' where accounting executives were instructed by CEO, Scrushy to control the situation by anyway and meet the expectations without thinking too much about the wrong financial statements entries that have impacted many shareholders but it was intentional crime, Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. Second sign of 'Weak board' when Scrushy instructed senior accountants for making the changes in financial statements and to meet the profitable expectations then accountants figure out the situation and call for a 'family meeting' and this meeting could attend by senior accountants only in which they called specific members and called it 'family meeting'. In this meeting, they discussed about financial statements fraud that they had committed and then 3 Topic looked into stock market analysis and decided that they will continue to do fraud in financial statement so that to meet the company's financial profitable expectations but didn't think to find possible alternative which could have helped them to minimize the risks of later fraud detection, Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. Now, according to company's internal statistics and financial statement analysis, everything was good and it was in profit of $1.3 billion. Third sign of fraud detection considered as 'Goodness in some areas atones for Evil in others' when SEC raised concern on Scrushy's sold of $100 million worth shares few days before the Company counted in huge loss due to Sarbanes-Oxley Act. Moreover, one more major question raised on audit that had done by Ernst and Young i.e. why had they failed to detect this fraud that running several years before or it was intentional and planned. Recommended Solution If Company has followed the GAAP guidelines and SEC regulations then there would have no chance to face the fraud issues except to run in loss. Certainly, it would have impacted investors trust and they might take out their investment then it might be possible Company managed less amount to run business but still it doesn't count in fraud list then it might have chance to reflect its strategies and potential to other investors so that to achieve successful results in future, Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. Senior accountant team should have projected some alternative solution that might agree under regulations but they didn't put their efforts to think on it except to follow the CEO's instruction even didn't think to at least suggest CEO and prepared to continue with fraud entry. Now, there was nothing left for Company either Scrushy sold off $100 million worth shares or not because Company had now come already in huge loss and it hadn't left any chance to some normal situation except to worst and finally, SEC noticed and took legal 4 Topic action against Scrushy and board members who didn't think to inform legal authorities, Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. 5 Topic References Ethics and Fraud at HealthSouth: Lessons from Inside a Corporate Meltdown. Retrieved from https://www.youtube.com/watch?v=R_K7bQpDJzg Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. Arxis Financial, Inc. Retrieved from http://www.arxisfinancial.com/images/pdfs/FraudHealth_South_Case.pdf 6 Topic Assignment Grading Course: Name Topic Yours Name Professor's Name [optional] University 1 Topic HealthSouth Accounting Frauds HealthSouth, a well-known United States company that run its business in public healthcare services. It offers rehabilitation hospitals for patients who suffer with physical disabilities due to incorrect medical treatments or for critical conditions. In 2003, HealthSouth has recognized as one of the massive accounting fraud that might lead it to bankruptcy. After this condition, Company's share fell from $30.56 to $0.40 dramatically and it was worst situation for investors who invested their millions. The fraud was not introduced in 2003 even it could have detected earlier because it was already there for several years since 1990's but did not noticed. Financials reports had manipulated over the years so that to meet the investor expectations and showed the company in profits in order to attract more investors and controlled the stock price as well for better common stock and trading opportunities, Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. In 2002, HealthSouth was noted for accounting fraud when its CEO Richard M. Scrushy sold $100 million stock in few days before Company passed through a huge loss. In U.S. Securities and Exchange Commission (SEC) investigation, Company was found as guilty in an accounting scandal where it has mentioned incorrect earnings of $1.3 billion in its financial statement and it was overstated. In result, Scrushy was charged for accounting fraud and sued by HealthSouth investors and asked to pay overall $2.8 billion, Ethics and Fraud at HealthSouth: Lessons from Inside a Corporate Meltdown. Hence, this was a complete disregard of moral and corporate ethical values which was intentional and was in favour of wealth and greed by Scrushy. Additionally, Scrushy has also made pressure to few other employees as well to perform the fraudulent action. There was no professionalism and nothing demonstrate a commitment toward diligence in the firm's performance even it must have the duty of each executive of the firm to ensure the ethical accounting system. There was no integrity in performance of the financial statement 2 Topic assignment and reasonably it was incorrect that exhibited wrong figures of profits i.e. $1.4 billion and represented more than 10% of the company's total assets, Ethics and Fraud at HealthSouth: Lessons from Inside a Corporate Meltdown. Number of evidences obtained against Company like; financial statement fraudulent, stock selling, where firm's financial statement mentioned overstated earnings which was even greater than its paid tax. There was no objective and confidentiality maintained in information transformation as fraudulent was known to many executives but they were not speaking because of CEO's course of action and following the orders without even making any complaint against anything which they have noticed, Ethics and Fraud at HealthSouth: Lessons from Inside a Corporate Meltdown. HealthSouth Accounting Fraud Signs When Richard Scrushy, CEO and co-founder of the Company instructed senior account executives to fix the problem and then accountants changed figures in financial statements and meet the expectations however, actual figures were below the expectations. So, this was the first sign of fraud i.e. 'Pressure to maintain those numbers' where accounting executives were instructed by CEO, Scrushy to control the situation by anyway and meet the expectations without thinking too much about the wrong financial statements entries that have impacted many shareholders but it was intentional crime, Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. Second sign of 'Weak board' when Scrushy instructed senior accountants for making the changes in financial statements and to meet the profitable expectations then accountants figure out the situation and call for a 'family meeting' and this meeting could attend by senior accountants only in which they called specific members and called it 'family meeting'. In this meeting, they discussed about financial statements fraud that they had committed and then 3 Topic looked into stock market analysis and decided that they will continue to do fraud in financial statement so that to meet the company's financial profitable expectations but didn't think to find possible alternative which could have helped them to minimize the risks of later fraud detection, Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. Now, according to company's internal statistics and financial statement analysis, everything was good and it was in profit of $1.3 billion. Third sign of fraud detection considered as 'Goodness in some areas atones for Evil in others' when SEC raised concern on Scrushy's sold of $100 million worth shares few days before the Company counted in huge loss due to Sarbanes-Oxley Act. Moreover, one more major question raised on audit that had done by Ernst and Young i.e. why had they failed to detect this fraud that running several years before or it was intentional and planned. Recommended Solution If Company has followed the GAAP guidelines and SEC regulations then there would have no chance to face the fraud issues except to run in loss. Certainly, it would have impacted investors trust and they might take out their investment then it might be possible Company managed less amount to run business but still it doesn't count in fraud list then it might have chance to reflect its strategies and potential to other investors so that to achieve successful results in future, Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. Senior accountant team should have projected some alternative solution that might agree under regulations but they didn't put their efforts to think on it except to follow the CEO's instruction even didn't think to at least suggest CEO and prepared to continue with fraud entry. Now, there was nothing left for Company either Scrushy sold off $100 million worth shares or not because Company had now come already in huge loss and it hadn't left any chance to some normal situation except to worst and finally, SEC noticed and took legal 4 Topic action against Scrushy and board members who didn't think to inform legal authorities, Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. 5 Topic References Ethics and Fraud at HealthSouth: Lessons from Inside a Corporate Meltdown. Retrieved from https://www.youtube.com/watch?v=R_K7bQpDJzg Hamilton, Chris. HealthSouth: A Case Study in Corporate Fraud. Arxis Financial, Inc. Retrieved from http://www.arxisfinancial.com/images/pdfs/FraudHealth_South_Case.pdf 6