In the winter of 2005, former HealthSouth CEO Richard Scrushy went on trial for fraud after he and other executives at HealthSouth, which specialized in outpatient surgery, rehabilitation, and physical therapy, were accused of inflating profits. The trial attracted a lot of attention, not only...

This case series (labeled A through C, UVA-E-0274, UVA-E-0274, and UVA-E-0275) focuses on an employee in the asset-management division of the Birmingham-based HealthSouth who suspects possible fraud in the company's accounting practices. The employee's suspicions were correct (see the A case,...

In the winter of 2005, former HealthSouth CEO Richard Scrushy went on trial for fraud after he and other executives at HealthSouth, which specialized in outpatient surgery, rehabilitation, and physical therapy, were accused of inflating profits. The trial attracted a lot of attention, not only...

This case series (labeled A through C, UVA-E-0274, UVA-E-0274, and UVA-E-0275) focuses on an employee in the asset-management division of the Birmingham-based HealthSouth who suspects possible fraud in the company's accounting practices. The employee's suspicions were correct (see the A case,...

After thinking through the situation in which an employee had given inaccurate information, thus alienating a client, the senior partner of the accounting firm ultimately decides to take no action against the employee. Having opted not to create a stir within the company or between the company...