Hospitals are non-profit organizations, that maintain receipts and keep records of a payment account, Income account, Expenditure account. There are many ways of income to hospitals as donations, room rent, medical care, laboratory charges, physiotherapy charges, etc.
The auditing of hospitals is very important due to the following reasons:
- The donation the hospitals receive from the government or firms.
- Thee purchase and selling of machines
- The proper use of the grant from the government
The auditor should take care of the following points while preparing and during the conduction of audit:
- The auditor should verify the receipts or bills of the patients, along with the examination of the patient register.
- The grants from the government or the donation are used for specific purposes or not.
- The records of the balance sheet should be examined, the transactions or donations made to the hospital, where all this money is invested.
- The auditor should make a notebook to write queries and check the minute details of a meeting of board members of the hospital or the management committee.
- The important decisions made regarding financial transactions should be noted. The input-output ratios should be calculated correctly.
- The salary of staff should be vouched as per auditing principles
- The security certificates, shares, and bonds should be examined physically
- Verification of the land and building of the hospital should be verified.
- The distinction between revenue and donation should be verified, the auditor should ensure that the donation has fulfilled the specific purpose or not.
The hospitals even get aids and grants from other countries of the world, the reason it is important for the auditing of hospitals. The patients are given proper medical services or not, the number of machines hospitals are using, the details of the purchase of machines and the selling receipts of machines should be examined properly.
The Auditors: The auditors for the hospital should be medically experienced to examine the medicines and management process.
The medicines: The business of medicine is huge, the hospitals might sell poor medicines, or medicines at a higher price than original, therefore it is necessary to audit hospitals. The advanced machines are purchased, the patients are getting benefit from it or not. The receipts and transactions related to machines and medicines should be examined thoroughly.
Hospital audit results in inpatient care, and helping patients to get the best services and quality treatment. Therefore, hospital audits are important.