Question

Explain the procedure of auditing in your hospital/institution.

17 Feb 2018
Answer :
Word Count : 779

Being non-profit organizations, hospitals prepare Receipt & Payment account, Income & Expenditure account and Balance Sheet; following are various items that fall under income and expenditure in the hospitals.

Main Items of Income

  • Room Rent
  • Medical Care
  • Dentistry Charges
  • Delivery Room Charges
  • Anesthesia Charges
  • Laboratory Charges
  • Grants for Operating Needs of Hospital
  • Grants for Fixed Assets
  • Donations
  • Miscellaneous Income
  • Interest on Investments
  • Fees from Nursing Training School
  • Bed Charges
  • Operating Room Charges
  • X-ray Charges
  • Pharmacy Charges
  • Physiotherapy Charges

Types of Expenses/ Payments

  • Electricity & Water Charges
  • Pharmacy Charges
  • Salaries and Wages
  • Pharmacy Expenses
  • Building Repair & Maintenance
  • Laundry Charges
  • Rent for Nursing Hostel Accommodation (In case of rented premises)
  • Telephone Expenses
  • Laboratory Expenses
  • Surgery Expenses
  • Operation Tools and Equipment Expenses
  • Depreciation

Preliminary Audit of Hospitals

An Auditor should follow the below mentioned procedure while conducting Audit of a hospital −

  • He should obtain a list of books, documents, register and other records as maintained by the Hospitals.
  • He should examine the audit report of last year and should note down qualifications, if any.
  • He should examine the system of receiving grants and
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