Corporate Compliance

Tip: Organizational independence

Healthcare Auditing Weekly, March 4, 2008

To achieve organizational independence, the audit department or compliance officer should report, and answer to the head of the organization. Furthermore, the department should be physically located away from the staff or management of the unit being audited.

To conduct audits objectively:

  • Auditors and compliance officers should be free from political pressure
  • Compensation, longevity, training, and advancement should be based on merit and competency
  • Audit staff should be able to audit internally and report to top management
  • Auditors should be considered free of organizational impairments when auditing outside the entity that employs the auditors

This tip is adapted from The Healthcare Auditor's Handbook. For more information about the book or to order your copy, visit HCMarketplace.

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