Cases related to corporate fraud can include any problems centered around the finances of an entity. Financial statement errors are warning signs or red flags for illegal activity possible leading to a fraudulent act. Fraudulent acts can be carried out in many ways, in the recent year’s criminals have become very creative in their endeavors. There is one similarity between all illegal acts against businesses, this involves a dishonest, weak link in the corporation and is a perfect example of how weak internal controls can negatively affect a business (What Is Business Fraud?, 2016, para. 1). The former CEO of HealthSouth, Richard Scrushy, was found guilty of “cooking the books” and money laundering. In 2004, Scushy was accused of convincing HealthSouth’s employees to falsely report on their earnings statement reports in order to become more appealing to stockholders. This action taken by Scrushy is highly illegal and he later payed for it. Scrushy violated ethics, his role in leadership, and the boundaries of accounting by using his position of power and intellect to manipulate employees as well as company reports. It was reported by Aaron Beam, HealthSouths former CEO, that Scrushy would …show more content…
By not taking measures to protect valuable information, the company is opening itself up for multiple attacks. Action is always recommended in order to combat illegal attacks. There are main focuses (prevention, detection, and response) that should be addressed when running a business, in order to deter a fraudulent attack and protect information. These main objectives should be included in every entities day to day operations. To reduce the possibility of compromised company information, it is recommended to institute the company’s rules and expectations at corporal