Healthsouth’s Balance & Income Statement Accounting Case Study

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1 and a half to 2 pages. single spaced, 12 font size, times new roman.

This is a case study question, answer in essay format in your own words and backed up by facts as an accounting auditor

Read attach case study case and answer the question below in essay format.

question is

What were the balance sheet and income statement implications of HealthSouth’s aggressive revenue recognition tactics? Also, in what specific way did this scheme violate the revenue recognition principle? 2. Weston explained that, in order to hide the fraud from auditors, the fraudulent entries were broken down into amounts small enough to fall beneath the audit scope. How might auditors combat this behavior, given the limited scope of a financial statement audit? 3. In your opinion, why didn’t the EY partner more fully investigate the whistleblower e-mail from Michael Vines? How might you have handled the situation differently?

 
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