GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
GEN COMBO LL PRINCIPLES OF AUDITING & OTHER ASSURANCE SERVICES; CONNECT AC
21st Edition
ISBN: 9781260427202
Author: Ray Whittington, Kurt Pany
Publisher: McGraw-Hill Education
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Chapter 21, Problem 46P

a.

To determine

Prepare a memo to your senior auditor listing at least eight questions that should be used to guide and direct the preliminary survey.

b.

To determine

Describe the phases of the audit that would be performed after the preliminary survey is completed.

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Organizing a Risk Analysis. You are the director of internal auditing of a large municipalhospital. You receive monthly financial reports prepared by the accounting department, andyour review of them has shown that total accounts receivable from patients has steadily andrapidly increased over the past eight months.Other information in the reports shows the following conditions:∙ The number of available hospital beds has not changed.∙ The bed occupancy rate has not changed.∙ Hospital billing rates have not changed significantly.∙ The hospitalization insurance contracts have not changed since the last modification 12months ago.Your internal audit department audited the accounts receivable 10 months ago. The auditdocumentation file for that assignment contains financial information, a record of the riskanalysis, documentation of the study and evaluation of management and internal risk mitigation controls, documentation of the evidence-gathering procedures used to produce evidenceabout the…
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