What procedures can auditors perform to detect fraudulent, Accounting Basics

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What procedures can auditors perform to detect fraudulent

1. What are several red flags that E&Y either was or should have been aware of in the audit of HealthSouth?

2. What procedures can auditors perform to detect fraudulent entries made during the consolida- tion process?

3. How can auditors determine a company's true "tone at the top"?

4. What is the appropriate response by auditors to information from "disgruntled" employees?

5. HealthSouth concealed the fraud by keeping the fraudulent transactions below $5,000. What recommendation would you have to E&Y to improve its sampling practices?

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