The fraud at HealthSouth at the structural level of the company was more intense because:

Question

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The fraud at HealthSouth was more intense at the structural level because checks and balances were eliminated and the organizational culture was compromised. The fraud was able to continue for so long because top-level executives were able to override controls and manipulate financial information without being detected. This was a result of a weak control environment and a toxic corporate culture that allowed unethical behavior to flourish. The external auditors played a role in the fraud, but they were not the primary reason for the severity of the fraud. The board of directors also did not manage the fraud, but they were complicit in not providing adequate oversight. The lack of a hotline to report financial fraud was also not a significant contributing factor to the severity of the fraud.

The Fraud at HealthSouth at the Structural Level of the Company