Tip: Testing compliance related to procedural based provisions
Healthcare Auditing Weekly, May 13, 2008
In testing compliance with procedural-based provisions, obtain sufficient evidence to be able to conclude that the entity performed the procedure and therefore complied with the provision. For example, using compliance control tests concerning the information that a Medicare+Choice entity provided to the fiscal intermediary will determine whether the information was provided in accordance with the applicable regulation.
If any instances of noncompliance related to the above described procedures are found, do the following:
- Discuss the instances with general counsel if applicable, conclude whether noncompliance has occurred, and consider the implications of them.
- Identify the compliance-control weakness that allowed the noncompliance to occur.
- Report he nature of any weakness in compliance controls and consider changing the audit report regarding internal control.
- Consider the impact of instances of noncompliance on the financial status of the entity.
- Report instances of noncompliance.
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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