Ernst & Young (E&Y) were the indepe

Ernst & Young (E&Y) were the independent auditors of HealthSouth between 2000 and 2002. They also conducted janitorial inspections of the company’s facilities. These inspections were called “pristine audits.” E&Y advised HealthSouth to classify the payments for “pristine audits” as “audit-related fees.”
HealthSouth, headquartered in Birmingham, Alabama, USA, is the largest provider of outpatient surgery, diagnostic and rehabilitative healthcare services in the USA with approximately 1,800 worldwide facilities in the USA, Australia, Puerto Rico, and the UK. Its former CEO, Richard M. Scrushy, is under an 85-count federal indictment, accused of conspiracy, securities fraud, mail and wire fraud, and money laundering. (SEC 2003)
A US government indictment charged that between 1996 and 2002 HealthSouth managers, at the insistence of Scrushy, inflated profits by $2.74 billion. Scrushy certified the HealthSouth financial statements when he knew that they were materially false and misleading. On November 4, 2003, he became the first CEO of a major company to be indicted for violating the Sarbanes-Oxley Act, which holds executives personally accountable for their companies’ financial reporting. (Business Week 2003).
Six months elapsed from the start of the SEC’s investigation to the filing of its fraud suit against Scrushy in March 2003. It took just seven weeks, from March 19 to May 5, for the US Justice Department to accumulate 11 guilty pleas from Scrushy aides. All five CFOs in the company’s history have admitted to cooking the books. (Helyar 2003)

Hasil (Bahasa Indonesia) 1:

Ernst & Young (E & Y) adalah auditor independen dari HealthSouth antara tahun 2000 hingga 2002. Mereka juga melakukan kebersihan inspeksi fasilitas perusahaan. Inspeksi ini dipanggil "audit murni." E & Y disarankan HealthSouth untuk mengklasifikasikan pembayaran untuk "audit murni" sebagai "terkait audit biaya." HealthSouth, berkantor pusat di Birmingham, Alabama, Amerika Serikat, adalah penyedia terbesar operasi rawat jalan, diagnostik dan rehabilitasi pelayanan kesehatan di Amerika Serikat dengan sekitar 1.800 fasilitas di seluruh dunia di Amerika Serikat, Australia, Puerto Riko, dan Inggris. Mantan CEO, Richard M. Scrushy, adalah di bawah dakwaan federal 85-hitungan, dituduh konspirasi, penipuan efek, mail dan kawat penipuan, dan pencucian uang. (SEC 2003) Dakwaan pemerintah AS dikenakan bahwa antara 1996 dan 2002 HealthSouth manajer, atas desakan Scrushy, meningkat keuntungan sebesar $2.74 miliar. Scrushy bersertifikat laporan keuangan HealthSouth ketika ia tahu bahwa mereka adalah palsu dan menyesatkan. Pada tanggal 4 November 2003, ia menjadi CEO perusahaan besar untuk didakwa karena melanggar UU Sarbanes-Oxley, yang memegang eksekutif bertanggung jawab untuk pelaporan keuangan perusahaan mereka pertama. (Minggu bisnis 2003). Enam bulan berlalu dari awal penyelidikan SEC untuk pengajuan yang sesuai penipuan terhadap Scrushy Maret 2003. Butuh hanya tujuh minggu, dari 19 Maret-Mei 5, untuk Departemen Kehakiman AS untuk mengumpulkan 11 bersalah pleas dari ajudan Scrushy. Semua lima CFOs dalam sejarah perusahaan telah mengakui untuk memasak buku. (Helyar 2003)