Corporate Compliance

Tip: Relevant audit findings

Compliance Monitor, April 21, 2010

Obtaining evidence used to support an audit finding is relevant if it has a logical, sensible relationship to that finding. Relevancy refers to the relationship of evidence to its use in supporting a finding. Irrelevant information should not be considered as evidence or be included in the working papers. These requirements notwithstanding, do not rule out documenting notes or observations relative to other potential problem areas identified during the audit.

To test the relevancy of evidence, determine whether it:

  • Relates to background, condition, criteria, effort, or cause
  • Makes a finding, conclusion, or recommendation more credible, believable and acceptable
  • Supports the audits objectives

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

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