Biotech Values

[10nisman]

Dew,

I've spent the last eight months at HealthSouth (HS) working on particular parts of its restatement and SEC filing that was filed yesterday. The fraud at HS was the most widespread of the high profile frauds, hitting 90% of all company accounts. Like all widespread frauds internal controls are non-existent and HS was no different as over 125 material weaknesses in internal controls have been documented. The average company has 2.

I don't know if SOX would have prevented the HS fraud as HS's previous auditors and consultants failed to do even the simpliest of tasks and lets hope they pay the price (for example, cash was overstated by over $300 million and cash is the easiest of all accounts to audit).

I do agree with you Dew that S-O should prevent frauds. Its extremely sad that someone as guilty as Schrushy walks free. Just a tragedy.