Forensic Accountants: Fraud Busters
Forensic Accountants: Fraud Busters
Daniel ******
Dr. Brian Collins
Contemporary Business
8/12/2012
Abstract The field of forensic accounting is a profession that is in high demand because of the technological and financial complexity of today’s companies. Because of the Enron scandal forensic account has come to the forefront with some major universities even offering it as a major. There are several skills that are required in forensic accounting and they include an expertise in accounting, investigating, excellent oral and written communication, and critical thinking. A forensic accountant must be an expert in the material but must also convey their findings clearly as they are often called upon to be expert witnesses in …show more content…
Healthsouth CEO Richard Scrushy was charged with money laundering, fraud, false corporate reporting, racketeering, obstruction of justice and bribery among other charges. Scrushy was the first CEO who faced charges under the Sarbanes Oxly Act 2002 in the wake of the Enron scandal. After the scandal was uncovered PricewaterhouseCoopers forensic accountants were brought in to bring to light the extent of the fraud. Although emails were deleted by the Healthsouth system every 60 days the forensic analysis team was able to uncover a large amount of fraud. Harvey Kelly, who was the forensic account who testified in court, showed how Healthsouth branches reported the real numbers to the corporate headquarters and their financial professionals would change the numbers to increase net income. They would use the term “contractual adjustments” to dump the losses. William Bavis, a money laundering expert, testified against Scrushy and said that he used the profits from the fraud to buy very expensive luxury items. He also testified that Scrushy received millions of dollars in bonuses for meeting financial targets in Healthsouth’s business plan. Bavis was able to prove beyond a reasonable doubt that Scrushy met these lofty quotas only because of the fraudulent numbers
Daniel ******
Dr. Brian Collins
Contemporary Business
8/12/2012
Abstract The field of forensic accounting is a profession that is in high demand because of the technological and financial complexity of today’s companies. Because of the Enron scandal forensic account has come to the forefront with some major universities even offering it as a major. There are several skills that are required in forensic accounting and they include an expertise in accounting, investigating, excellent oral and written communication, and critical thinking. A forensic accountant must be an expert in the material but must also convey their findings clearly as they are often called upon to be expert witnesses in …show more content…
Healthsouth CEO Richard Scrushy was charged with money laundering, fraud, false corporate reporting, racketeering, obstruction of justice and bribery among other charges. Scrushy was the first CEO who faced charges under the Sarbanes Oxly Act 2002 in the wake of the Enron scandal. After the scandal was uncovered PricewaterhouseCoopers forensic accountants were brought in to bring to light the extent of the fraud. Although emails were deleted by the Healthsouth system every 60 days the forensic analysis team was able to uncover a large amount of fraud. Harvey Kelly, who was the forensic account who testified in court, showed how Healthsouth branches reported the real numbers to the corporate headquarters and their financial professionals would change the numbers to increase net income. They would use the term “contractual adjustments” to dump the losses. William Bavis, a money laundering expert, testified against Scrushy and said that he used the profits from the fraud to buy very expensive luxury items. He also testified that Scrushy received millions of dollars in bonuses for meeting financial targets in Healthsouth’s business plan. Bavis was able to prove beyond a reasonable doubt that Scrushy met these lofty quotas only because of the fraudulent numbers