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Related Experiment Videos

Internal audit consider the implications.

Grant D Baumgartner1, Angela Hamilton

  • 1Protiviti, Inc, Seattle, USA. grant.baumgartner@protiviti.com

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|September 22, 2007
PubMed
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Establishing an internal audit function in healthcare improves operations and efficiency. Key steps include securing board approval, forming a committee, assessing risks, and planning audits to address concerns and enhance financial performance.

Area of Science:

  • Healthcare Management
  • Organizational Auditing
  • Corporate Governance

Background:

  • Internal audit functions are crucial for addressing operational concerns and enhancing efficiency in healthcare organizations.
  • Establishing robust internal controls and governance is vital for healthcare entities.
  • External and internal stakeholders increasingly demand transparency and accountability in healthcare operations.

Purpose of the Study:

  • To outline the essential steps for establishing an effective internal audit function within healthcare organizations.
  • To highlight the benefits of internal audit in improving operational appropriateness and financial performance.
  • To provide a framework for healthcare organizations seeking to implement or enhance their internal audit capabilities.

Main Methods:

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  • The study outlines a strategic approach to establishing an internal audit function.
  • Key components include securing board support and forming an audit committee.
  • Essential activities involve resource determination, comprehensive risk assessment, and strategic audit plan development.

Main Results:

  • Successful implementation requires strong board and audit committee engagement.
  • A thorough risk assessment is fundamental to developing a relevant and effective audit plan.
  • Adequate resource allocation is critical for audit function efficacy.

Conclusions:

  • Implementing an internal audit function is a systematic process requiring strategic planning and stakeholder buy-in.
  • Internal audit serves as a critical tool for risk management, operational improvement, and financial oversight in healthcare.
  • Healthcare organizations can significantly improve governance and performance by establishing a well-structured internal audit function.