The 1960s found 17-year-old Richard

The 1960s found 17-year-old Richard Scrushy pumping gas in Selma, Alabama, thinking of better opportunities. With his then-wife pregnant, Scrushy found his first real job working alongside his mother as a respiratory technician.5 After graduating from the University of Alabama, Scrushy was hired at an entry-level position at Lifemark Corp, a Houston-based health-care company.5 He worked his way up the ladder and, in no time, was running the company’s pharmacy, physical rehab, and merger departments.5 In 1984, Scrushy received a $1 million loan from Citicorp Venture Capital to start his own company, HealthSouth, Inc.5 HealthSouth, the first national chain of orthopedic hospitals and outpatient centers, quickly became one of United States’ largest owners and operators of inpatient rehabilitative hospitals.1,5 By 1996, when Scrushy took his company public, HealthSouth had a massive market value of over $12 billion.2 However, in retrospect, HealthSouth’s growth, market value, and financial statement values were not nearly what they appeared to be, as HealthSouth executives had perpetrated an upwards of $2.7 billion of accounting fraud.3

The HealthSouth fraud occurred during an interesting period of economic growth and lackadaisical regulations, which made committing accounting fraud much easier. The 1990s saw investors and lenders who were less focused on profitability and more so on revenue.4 When looking for capital as a company, growth was key. This pressured CEOs, like Scrushy, to continue growing their companies and meeting analyst expectations quarter after quarter. Combined with this increased pressure of growth was an environment of strange legalism.4 If accounting procedures and policies did not directly violate Generally Accepted Accounting Principles (GAAP), then they were considered legal, and in turn, morally and ethically adequate.4 This allowed Scrushy and HealthSouth to meet analyst expectations for 40 consecutive quarters, using creative accounting methods and ultimately fraudulent accounting. Driven by this thirst to hit analyst expectations, Scrushy and HealthSouth’s “financial family” (Scrushy and five HealthSouth CFOs) altered their earnings numbers; explained as: plugging “holes” in the balance sheet with “dirt.” 1 The fraud, which included improperly capitalizing expenses, overestimating insurance reimbursements, overvaluing fixed assets, and using faulty reserve accountings, went undetected until 2003, when former HealthSouth CFO, Weston Smith, revealed the fraud to federal investigators.1 Despite seemingly being the obvious mastermind behind HealthSouth’s accounting fraud, Scrushy denied (and still denies to this day) that he was involved in any way.5 Scrushy claimed that the other executives took part in the fraud, and kept it hidden from him completely.5 Despite his expressed innocence, Scrushy was convinced for accounting fraud and served a five-year sentence.5

Hasil (Bahasa Indonesia) 1:

Tahun 1960-an ditemukan 17-year-old Richard Scrushy pompa gas di Selma, Alabama, memikirkan kesempatan yang lebih baik. Dengan kemudian istrinya hamil, Scrushy menemukan pekerjaan nyata pertama bekerja bersama ibunya sebagai technician.5 pernapasan setelah lulus dari University of Alabama, Scrushy dipekerjakan di posisi entry-level di Lifemark Corp, company.5 berbasis di Houston perawatan kesehatan yang dia bekerja jalan menaiki tangga dan, dalam waktu singkat, menjalankan perusahaan farmasi, rehabilitasi fisik dan penggabungan departments.5 pada tahun 1984 , Scrushy menerima pinjaman $1 juta dari modal ventura Citicorp untuk memulai perusahaannya sendiri, HealthSouth, Inc.5 HealthSouth, rantai nasional pertama ortopedi rumah sakit dan pusat-pusat rawat jalan, dengan cepat menjadi salah satu terbesar Amerika Serikat pemilik dan operator dari rawat inap rehabilitasi hospitals.1,5 pada tahun 1996, ketika Scrushy mengambil perusahaan umum, HealthSouth memiliki nilai pasar besar-besaran lebih dari $ 12 billion.2 namun , dalam retrospeksi, HealthSouth's pertumbuhan, nilai pasar, dan laporan keuangan nilai-nilai yang hampir tidak apa yang mereka tampaknya, sebagai HealthSouth Eksekutif telah dilakukan ke atas dari $2,7 miliar dari fraud.3 akuntansiThe HealthSouth fraud occurred during an interesting period of economic growth and lackadaisical regulations, which made committing accounting fraud much easier. The 1990s saw investors and lenders who were less focused on profitability and more so on revenue.4 When looking for capital as a company, growth was key. This pressured CEOs, like Scrushy, to continue growing their companies and meeting analyst expectations quarter after quarter. Combined with this increased pressure of growth was an environment of strange legalism.4 If accounting procedures and policies did not directly violate Generally Accepted Accounting Principles (GAAP), then they were considered legal, and in turn, morally and ethically adequate.4 This allowed Scrushy and HealthSouth to meet analyst expectations for 40 consecutive quarters, using creative accounting methods and ultimately fraudulent accounting. Driven by this thirst to hit analyst expectations, Scrushy and HealthSouth’s “financial family” (Scrushy and five HealthSouth CFOs) altered their earnings numbers; explained as: plugging “holes” in the balance sheet with “dirt.” 1 The fraud, which included improperly capitalizing expenses, overestimating insurance reimbursements, overvaluing fixed assets, and using faulty reserve accountings, went undetected until 2003, when former HealthSouth CFO, Weston Smith, revealed the fraud to federal investigators.1 Despite seemingly being the obvious mastermind behind HealthSouth’s accounting fraud, Scrushy denied (and still denies to this day) that he was involved in any way.5 Scrushy claimed that the other executives took part in the fraud, and kept it hidden from him completely.5 Despite his expressed innocence, Scrushy was convinced for accounting fraud and served a five-year sentence.5

Hasil (Bahasa Indonesia) 2:

Tahun 1960 ditemukan Richard Scrushy memompa gas 17 tahun di Selma, Alabama, memikirkan peluang yang lebih baik. Dengan istrinya saat itu hamil, Scrushy menemukan pekerjaan nyata pertama bekerja bersama ibunya sebagai technician.5 pernapasan Setelah lulus dari University of Alabama, Scrushy dipekerjakan di posisi entry-level di Lifemark Corp, sebuah dengan kesehatan yang berbasis di Houston company.5 perawatan Ia meniti karier tangga dan, dalam waktu singkat, menjalankan farmasi perusahaan, rehabilitasi fisik, dan merger departments.5 pada tahun 1984, Scrushy menerima pinjaman sebesar $ 1 juta dari Citicorp Venture Capital untuk memulai perusahaan sendiri, HealthSouth, Inc.5 HealthSouth, rantai nasional pertama rumah sakit ortopedi dan pusat rawat jalan, dengan cepat menjadi salah satu pemilik terbesar Amerika Serikat 'dan operator dari rawat inap rehabilitatif hospitals.1,5 pada tahun 1996, ketika Scrushy mengambil publik perusahaannya, HealthSouth memiliki nilai pasar besar lebih dari $ 12 miliar.2 Namun, kalau dipikir-pikir, pertumbuhan HealthSouth ini, nilai pasar, dan nilai-nilai laporan keuangan tidak hampir apa yang mereka tampaknya, sebagai eksekutif HealthSouth telah dilakukan suatu atas $ 2,7 miliar akuntansi fraud.3

The HealthSouth penipuan terjadi selama periode yang menarik dari pertumbuhan ekonomi dan peraturan lesu, yang membuat penipuan akuntansi melakukan jauh lebih mudah. 1990-an melihat investor dan pemberi pinjaman yang kurang terfokus pada profitabilitas dan lebih sebagainya revenue.4 Ketika mencari modal sebagai perusahaan, pertumbuhan adalah kunci. Ini ditekan CEO, seperti Scrushy, untuk terus tumbuh perusahaan mereka dan memenuhi ekspektasi analis kuartal setelah kuartal. Dikombinasikan dengan ini peningkatan tekanan pertumbuhan adalah lingkungan legalism.4 aneh Jika prosedur dan kebijakan akuntansi tidak secara langsung melanggar Generally Accepted Accounting Principles (GAAP), maka mereka dianggap legal, dan pada gilirannya, secara moral dan etis adequate.4 ini memungkinkan Scrushy dan HealthSouth untuk memenuhi ekspektasi analis untuk 40 kuartal berturut-turut, dengan menggunakan metode akuntansi yang kreatif dan akuntansi akhirnya penipuan. Didorong oleh rasa haus ini untuk memukul ekspektasi analis, Scrushy dan HealthSouth "keluarga keuangan" (Scrushy dan lima HealthSouth CFO) diubah angka pendapatan mereka; dijelaskan sebagai: ". kotoran" memasukkan "lubang" dalam neraca dengan 1 The penipuan, yang termasuk tidak benar memanfaatkan biaya, overestimating penggantian asuransi, overvaluing aktiva tetap, dan menggunakan accountings cadangan rusak, tidak terdeteksi sampai tahun 2003, ketika mantan HealthSouth CFO, Weston Smith, mengungkapkan penipuan untuk investigators.1 federal yang Meskipun tampaknya menjadi dalang jelas di balik penipuan akuntansi HealthSouth ini, Scrushy membantah (dan masih menyangkal sampai hari ini) bahwa dia terlibat dalam way.5 Scrushy mengklaim bahwa eksekutif lainnya mengambil bagian dalam penipuan, dan menyimpannya tersembunyi dari dia completely.5 Meskipun tidak bersalah menyatakan, Scrushy yakin untuk penipuan akuntansi dan disajikan sentence.5 lima tahun