Plante Moran’s Audit Approach for Healthcare Organizations
PROFESSIONAL STANDARDS INTEGRATION
Plante Moran is unique in that our standards team is centralized and independently reviews your financial statements. As a result, our professional standards department is involved in the entire engagement, from consultation during planning, field work testing, and final signoff. Your financial statements and issues will be reviewed by a member of our standards team who specializes in health care. This continual involvement by our professional standards department helps to ensure there are no-surprises at year end.
At Plante Moran, we understand the importance of tailoring our approach to meet your needs and preferences. A summary of our audit approach is below:
PLANNING AND RISK ASSESSMENT
This phase focuses on your needs and expectations and enhances our understanding of your healthcare organization through discussions with management, interviews, observations, and gathering current and historical data. We will meet with accounting department staff to gain an understanding of current developments, establish a mutually agreed-upon timeline, and develop expectations for the audit work.
After the planning and risk assessment phase, we will document and perform our preliminary tests of your accounting systems and their related internal controls (accounts receivable/cash receipts/revenue, cash disbursements/accounts payable, payroll, inventory cost accumulation, etc.). Based on the results of the tests we will determine whether additional control testing will result in increased audit efficiencies. We will provide a project status report to management to alert you to the results of our procedures and the key issues we have identified.
In accordance with our audit plan and Generally Accepted Auditing Standards (GAAS), we will perform certain tests on your financial statement balances. We will utilize a combination of your technology and our audit technology tools to perform clerical and analytical tests more efficiently. Our year-end procedures are designed to allow timely resolution of issues and delivery of reports to management.
DELIVER AUDIT REPORT & ASSESS PERFORMANCE
At the end of fieldwork, we communicate results with management verbally and in a draft format. We will formally communicate our findings to the management.
We measure and monitor our progress in meeting your needs and expectations. Ongoing, consistent communication between you and the engagement team is designed to constantly validate our strong service delivery. Your engagement partner will have constant involvement and contact throughout all phases of the audit service delivery. Our firm also provides our clients with the opportunity to discuss the quality of feedback with our managing partner and through our annual client satisfaction survey. We encourage and seek candid feedback directly and through our independent and confidential forums.
Prior to finalizing our work, we’ll meet with senior management to review draft copies of the financial statements and management letter. We’ve found that this is not only more efficient, but it also avoids any prolonged delays due to issues that are easily resolved face to face. We also will meet with the audit committee before the earnings release to review the results of the audit and review the financial statements.