On an organizational level, the key issue in the Healthsouth case is:

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The key issue in the Healthsouth case is the role of ethical leadership and corporate governance in the accounting fraud. The company's founder and CEO, Richard Scrushy, created a culture of fear and intimidation that allowed the fraud to go unnoticed for years. The board of directors failed in their duty to provide proper oversight and ensure ethical behavior within the organization. The case highlights the importance of having strong ethical leadership and effective corporate governance to prevent accounting fraud.

On an Organizational Level, the Key Issue in the Healthsouth