Auditing- Audit of Doctors
A doctor examines patients health and thereby charges doctor’s fees, visiting charges, operation charges etc. Thus, those fees received by doctors should be accounted for in proper way, any expenses of doctors should also be recorded at the same time.
If a doctor examines in his own clinic, there might be some fixed assets required to set up which should be recorded in his file if the doctor himself paid the charges for them. He should ensure that the fixed assets depreciate over time and such depreciation should be recorded in the books.
Therefore, it is important to conduct audit of doctors also. But before moving forward, there are some prerequisites we should know a doctor should maintain:
- There should be a register or document or account maintained by a doctor on every day basis and he should keep records of every transaction he makes in that register.
- A doctor charges fees to attend patient in his clinic, or take visiting charges if he visits a patient in a hospital or at home of patients, operation charges if any patient is operated or any other charges taken by a doctor should be recorded and noted by doctor.
- A doctor should have control over staff and their expenses.
- Any purchase of items, equipment to be handled in clinic, stationery, printing and medicines should be vouched and kept in accounts on daily basis.
- In case of equipment and fixed asset, depreciation should be charged adequately.
- Doctor should ensure that the cash book should reconcile with cash balance available.
- Since the doctors take cash from patients, doctors should ensure that cash has to be deposited in the bank account timely.
- An auditor should ensure that revenue and capital expenditures should be recorded on daily basis.
- It is important to audit a doctor’s file as proper tax should be given to the government and following all rules and regulations by Income Tax Act and other relevant acts should be checked upon.
Books a doctor should maintain
- Cash Book/ Journal
- Copies of bills made by doctor
- Copies of invoices for any purchases
- Medicines/drugs stock
An auditor should ensure that doctors keep proper records either in register or accounting system, and let auditors vouch the documents, receipts, counterfoils with the system.
Auditors, when asked for should advice doctors to improve the accounting system in any manner as required so that proper accounting of cash receipts, payments, bank reconciliation should be done to ensure that the financial statements of a doctor’s file be correct and represent accurate decision.