The National Health Care Billing Audit Guidelines

However, the author argues that these audits have become increasingly ineffective. Identify and discuss at least three reasons why these audits are becoming less effective.

Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 12.1 EyeMax Corporation . . Evaluation of Audit Differences

To conduct the audit, the firm must acquire sufficient understanding of the internal control processes to help determine the nature and timing of the audit. However, the audit is not designed to identify deficiencies in internal control or provide assurance. The firm will make the audit committee aware of any significant deficiencies that come to Anderson, Olds, and Watershed’s attention during the audit.

There is no standard Revenue Cycle billing process to ensure claims are accurately and compliantly billed to Medicare for inpatient stays of two days or less. Four of the 10 sample claims were non-compliant with the Two-Midnight Rule.

A company’s internal control over financial reporting includes policies and procedures that pertain to the maintaining records accurately and fairly, provide reasonable assurance that the transactions are recorded according to the accepted accounting principles and the receipt and expenditures of the company being carried out with the authorization from management and directors of the company. The auditors also express an unqualified opinion for the consolidated financial statements which means that the auditor's opinion of the financial statement, was given without any reservations. Such an opinion basically states that the auditor feels the company followed all accounting principles appropriately and that the financial reports are an accurate representation of the company's financial condition.

Sarbanes-Oxley Act was enforced in the past but caught everyone’s attention when drastic audit failures from Enron and Worldcom happened. An enhanced act (SOX) was enacted in 2002 improving audit quality. In particular, section 404 provides guidance of assessment to internal control. For an accounting perspective, internal control is a system for internal and external auditors to measure performance and recommend the improvement of the control. It is definitely correct that both enforcement and the system are to address the risks of frauds. In the meantime, a new regulatory agency, the Public Company Accounting Oversight Board (PCAOB) was created to monitor the work of public accountants. Among SOX and the PCAOB, accounting

Arens, A. A., Elder, R. J., & Beasley, M. S. (2006). Auditing and Assurance Services (11th Ed.). Prentice Hall, Upper Saddle River, NJ: Pearson Prestice

The Sarbanes-Oxley Act of 2002 significantly increased the authority of audit committees in overseeing their companies’ financial reporting processes. One of the audit committee’s responsibilities is that they oversee the financial reporting process. Audit committees are required to review and discuss the annual audited financial statements with management and the external auditors. They also monitor control processes. Monitoring internal controls directly affects the reliability of financial statements is generally understood to be a function of audit committees. SOX section 301 directed the SEC to require audit committees to establish procedures to handle complaints on accounting, internal accounting controls, or auditing matters and to provide confidentiality to employees who submit complaints. Section 301 also states that audit committees are solely responsible for all the aspects relating to selecting, hiring, and replacing external auditors, whom report to the audit committee. An audit committee approves the compensation to external auditors. It also states that audit committees must discuss and resolve disagreements between management and external auditors.

During the performance of this integrated audit, require numerous judgments about the internal control and overall financial reporting and how well it addresses risks of material misstatements within the financial statements (AICPA, 2014). After re-evaluating the previous errors found from the previous audit, the audit team found the corrective actions to be appropriate and justified in elimination of human error by implementing additional checks and balances within the manual process. No additional misstatements have been found and all internal controls off the financial reporting seem appropriate and just.

When auditing a public company, the auditor must form an opinion on the effectiveness of internal control

 Audit Process 2-3 Chapter 02 - Financial Reporting and Analysis   Generally Accepted Auditing Standards Auditing Procedures Audit Report Types of Audit Qualifications ―Except for‖ Qualification Adverse Opinion Disclaimer of Opinion Analysis Implications from Auditing Analysis Implications of the Audit Process Audit Risk and Its Implications Analysis Implications of Auditing Standards Analysis Implications of Auditor Opinions Analysis Implications of Explanatory Language for Uncertainties Analysis Implications of the SEC Appendix 2B: Earnings Quality  Determinants of Earnings Quality Accounting Principles  Income Statement Analysis of Earnings Quality Analysis of Maintenance and Repairs Analysis of Advertising Analysis of Research and Development

With the avalanche of accounting scandals that have rocked the public, people tend to have increasingly high expectation that auditors are accountable for detecting all frauds, while the standards require auditors to provide reasonable, but not absolute, assurance. The purpose of the report is to discuss the accountability of auditors in detecting fraud by analysing a $16.9 million fraud of Otago District Health Board (ODHB) perpetrated by Swann and Harford from 2000 to 2006. The report will explain the event, the fraud, the stakeholders, the role of auditors and the current situation.

When analyzing a copy for the means of producing a deliverable audit report, there are a few details that must be considered first. One of the important aspects to increase risk awareness and improve upon the current operations. To convey this thru the reporting, it is important to know the organizations reporting practices; when and to who do they report the finding to? Once the auditor has this information, they need to determine the objective for the audit. Knowing this information will help to determine the approach to take. Next a structure will need to be developed; how will the audit report be communicated? This is a vital step when conveying potentially intricate detail, it must be clear to the receiver. The auditor

Auditing is a systematic procedure of going into accounts of an organziaiton, by an independent person, for true and fair elavuation of the accounts of the organization. auditors are the individuals who evaluate the extent up to which financial postion of an organization is depicted through the financial statement of it. There are two types of auditors; internal auditor and external auditors. Internal auditors are the employees of organziaion, appointed to maintain internal check and internal control over the finances of it. However, external auditros are independent individuals hired by the company, to evaluate fairness of its accounts.

Financial Statements are used to evaluate the company’s performance. This information is also distributed to shareholders and investors. These financial statements must be accurately prepared according to the GAAP (Generally Accepted Accounting Principles) rules and regulations. A third party auditor is used in order to check the ‘…annual financial statements, to ensure that the annual financial statements are reliable and prepared according to GAAP (Sullivan, 2011).’ There are four types of financial statements: Stockholders’ Equity, Balance Sheet, Income Statement and Statement of Cash Flows.