Zeune recommends a new clause in auditors’ rep and legal letters
It’s worth wading through a couple commercials to get to this video clip from CNN on a cancer patient who gets her health insurance canceled just as she starts treatment.
Long story, short: The patient wins $9 million. The insurance company employee got bonuses for canceling policies of sick patients.
“People do what they’re paid to do,” according to Gary Zeune (pictured), at Pros and Cons, who tipped us to this item. “Harming customers is illegal in some states, a violation of SAS 54.”
“With states and Congress outraged by this business behavior, many will likely make the practice illegal,” Zeune warns. “If you’re an auditor, add this to your rep and legal letters. If you’re a controller/CFO are you working at a company that’s breaking the law and reporting artificially inflated profits?”
