What were the balance sheet and income statement implications of HealthSouth’s aggressive revenue recognition tactics?

The submission need to be at least one-page Microsoft word file (8.5 x 11), single space, times new roman font, and size 12. Do not add the question just let it flow in with the paragraphs.

1.What were the balance sheet and income statement implications of HealthSouth’s aggressive revenue recognition tactics? Also, in what specific way did this scheme violate the revenue recognition principle?

2. Weston explained that, in order to hide the fraud from auditors, the fraudulent entries were broken down into amounts small enough to fall beneath the audit scope. How might auditors combat this behavior, given the limited scope of a financial statement audit?

3. In your opinion, why didn’t the EY partner more fully investigate the whistleblower e-mail from Michael Vines? How might you have handled the situation differently?

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