Session Title: Internal Audit Lessons from the HealthSouth Fraud

Session Description: The $3 billion fraud at HealthSouth was a high-profile case that came to light in 2003 soon on the heels of such other frauds as those at Enron and WorldCom. Although 17 years have passed since the fraud was detected, the case is still attention grabbing, as shown by a 2020 episode of Trial by Media on Netflix revisiting the fraud and HealthSouth founder Richard Scrushy. This session reviews the fraud and serves as a reminder as to why a strong internal audit function is imperative to combat fraud.

November 13, 2020

Webinar: 12pm - 1pm

 

Speaker: Ronny Daigle, Professor Accounting, Sam Houston University. 

Topic: Internal Audit Lessons from the HealthSouth Fraud

Objectives:

• Participants will gain an overview of the HealthSouth fraud and issues raised in two separate Congressional hearings in 2003.
• Participants will learn about how external auditor and corporate compliance investigation of tips led to the continuation of the fraud.
• Participants will learn how weaknesses in HealthSouth’s internal audit function (lack of staffing, lack of access to corporate accounting records, improper reporting lines) likely prevented internal auditors from detecting the fraud.

Experience level: Basic/Intermediate

Prerequisites: None

CPE Credit(s): 1 hour