Discussion Post: "Going South: Lessons Learned from HealthSouth Fraud"
• What are the financial reporting motivations for capitalizing expenditures that should be classified as operating expenses? Provide additional examples where other companies have used this (or a similar) strategy.
• 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?