Stakeholders
Who was the CEO of Health South?
Richard Scrushy
In what year did the whistle get blown?
2003
Define Fraudulent Accounting?
The intentional manipulation of financial statements to create a facade of a company's financial health
Who blew the whistle on this scandal?
CFO, Weston Smith
By how much did they overstate their revenue?
Approximately $3 billion
List ONE of the methods Health South used to overstate their revenue?
capitalizing expenses
overestimating insurance reimbursements
overstating fixed assets, understating liabilities
using faulty reserve accounting
How many years was Scrushy sentenced to prison for?
5 years
Was were the overall ramifications of the scandal? (hint: legal case)
$100 million class-action lawsuit
What Does GAAP's stand for?
Generally Accepted Accounting Principles