Home Work Module 4
My course is Accounting for healthcare.
- Describe the process an outside auditor uses to analyze an organization’s transactions to ensure accuracy.
- Describe and discuss a reason for audit failure.
- How does an internal audit vary from an external audit? Why are internal audits so important?
Solution Preview
Healthcare Accounting
Auditing is the systematic inspection if accounts, records and documents of an organization to ascertain that the financial statements are just as stated and the inventory rhymes and is well followed (Board, 2017). Therefore, both internal and external auditing are important in managing an organization. An independent outsider performs an external audit to ensure that the financial reports represent the standing of the organization. For accuracy purposes, the auditor selects the organization where the audit will be conducted.
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