This sample audit report focuses on accounts receivable (AR) controls and processes at hospitals and healthcare clinics and can be used as a general guide. This review describes the process of obtaining an understanding of and documenting the AR process, reviewing the adequacy of current policies and procedures, and evaluating the adequacy of design and the functioning effectiveness and efficiency of the internal controls related to the AR process.
The report contains issues and observations related to the AR process. Observations are listed in order of priority along with management’s implementation plan. Issues noted in this report include:
- The bad debt reserve policy is not standardized or documented.
- Certain departments regularly submit late charges and increase the overall days in accounts receivable.
- Claims are not consistently submitted within the required submission time limit period and denials are not promptly followed up on, resulting in substantial write-offs.