Introduction of Audit

Definition:
An audit report is a written opinion of an auditor regarding whether an entity's financial
statements present fairly its financial position. This is written in a standard format, as
mandated by generally accepted auditing standards (GAAS). GAAS requires or allows
certain variations in the report, depending upon the circumstances of the audit work that the
auditor engaged in. For example, the report may include a qualified opinion, depending upon
the existence of any scope limitations that were imposed upon the auditor's work.

Prof. L.R.Dicksee. "auditing is an examination of accounting records undertaken with

a view to establish whether they correctly and completely reflect the transactions to
which they relate.
The book "an introduction to Indian Government accounts and audit" "issued by the
Comptroller and Auditor General of India, defines audit an instrument of financial control. It
acts as a safeguard on behalf of the proprietor (whether an individual or group of persons)
against extravagance, carelessness or fraud on the part of the proprietor's agents or servants in
the realization and utilisation of the money or other assets and it ensures on the proprietor's
behalf that the accounts maintained truly represent facts and that the expenditure has been
incurred with due regularity and propriety. The agency employed for this purpose is called an
auditor."

The term audit is derived from the Latin term audire, which means to hear. In early days
an auditor used to listen to the accounts read over by an accountant in order to check
them. The objective of audit shifted and audit was expected to ascertain whether the
accounts were true and fair rather than detection of errors and frauds.

FEATURES OF AUDITING
Audit is a systematic and scientific examination of the books of accounts of a
business.
Audit is undertaken by an independent person or body of persons who are duly
qualified for the job.
Audit is a verification of the results shown by the profit and loss account and
the state of affairs as shown by the balance sheet.
Audit is a critical review of the system of accounting and internal control.
Audit is done with the help of vouchers, documents, information and
explanations received from the authorities.
The auditor has to satisfy himself with the authenticity of the financial
statements and report that they exhibit a true and fair view of the state of
affairs of the concern.
The auditor has to inspect, compare, check, review, scrutinize the vouchers
supporting the transactions and examine correspondence, minute books of
share holders, directors, Memorandum of Association and Articles of
association etc., in order to establish correctness of the books of accounts.

PURPOSE & OBJECTIVES

The objective of external audit is for the auditor to express an opinion on the truth and
fairness of financial statements.
Accountability
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The main necessity for conducting the audit of financial statements stems from the fact that
the persons responsible for the preparation of financial statements are often different from the
owners of large corporations.
Whereas in small owner managed companies, the owners have first hand knowledge of the
affairs of their business, management and ownership is normally separate in the case of large
companies that often have thousands of shareholders. In large corporations, shareholders
appoint directors to run the enterprise on their behalf. This separation of ownership and
control creates the need for external audit.
Financial statements are the main source of accountability of management performance by
the shareholders. However, as the management is responsible for the preparation of financial
statements, shareholders have to rely on external verification by auditors in order to gain
reasonable assurance that the accounts are free from material misstatements and can therefore
be relied upon to be presenting true and fair view of the affairs of the company.

Reliability
Apart from the needs of owners, other users of financial statements may need to place
reliance on the financial statements. External audit is a means of providing a reasonable basis
for the users to place reliance on financial statements.
Examples of stakeholders (other than shareholders) that rely on audited financial statements
include the following:
Tax authorities rely on audited financial statements to determine the accuracy of tax returns
filed by the companies.
Financial institutions require audited accounts of prospective borrowers for assessing the
credit risk by analyzing their liquidity and financial position.
Management uses the audit exercise to re-evaluate the company's risk management processes
and internal control system by considering the feedback given by external auditors during the
course of the audit in this regard.

Advantages & Disadvantages of Audit

ADVANTAGES

1. Gain a strong sense of internal control.

2. Identify key areas for improvement in your company.
3. Test out the performance of new technology.
4. Evaluate threats, economy, efficacy and quality.
5. Realise fraudulent occurrences in the business.
6. Analyze and understand your firms' financial data.
7. The public are protected from corruption.

DISADVANTAGES
1. It does not take into account the productivity and the skills of the employees of the
business.
2. The financial data is never current and does not reveal much about the present financial
position of a company.
3. Different accountants use different techniques; therefore it would be hard to compare
audits between companies who have used different accountants.
4. For smaller companies, hiring an accountant/firm to carry out an audit can be costly.
5. A bad audit can discourage investment.
6. Can be time consuming to answer the auditor's questions and the business may not work to
maximum capacity.

Importance
independent and unbiased auditors confirm that an organisations
claims about its financial position, and the process behind these claims,
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are true and fair is useful for a wide range of reasons, depending on
your point of view.
Investors and shareholders: These people own the organisation
but, in many cases, will not be closely involved in its day to day
running. So, again, an independent audit is very interesting to them,
since it provides a trusted second opinion on the organisations
financial statements and, in turn, gives some, insight as to how well it
is being run.
Company accountants/Finance Directors: These people are
essentially in charge of the finances of the organisation being audited
and, for them, going through an audit is mostly about confidence and
peace of mind. Having an independent expert poring over your figures
might be a little bit uncomfortable at times, but the reward is in making
sure that your numbers are true and fair.
Financial analysts: These people help to determine what an
organisations shares are worth and, therefore, its value as a whole.
They do so by independently analysing and commenting on its financial
position as well as making predictions about its future success. For
financial analysts, audited accounts are a vital tool, since they provide
unbiased and independently checked information on which to base
their work.
Regulators: These independent organizations are tasked with
overseeing wide range of industries to ensure individual firms are
operating fairly and legally. They may make use of audited accounts as
part of the ongoing monitoring of each firm or to help with more
specific investigations.
Other stakeholders: Depending on the organisation being audited,
the outcome of an audit process may be interesting to a whole range of
other stakeholders, such as politicians, journalists and the general
public
Auditing is the analysis of the financial accounts/records, by a qualified accountant, and
procedures of a firm or organization.
This is essential in order to gain a fair perspective on the company's financial statements.
With auditing, potential investors and creditors can look at the financial statements to decide
whether to invest in a business or not.
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AUDIT OF INCOME AND EXPENSES

AUDIT PROCEDURES FOR INCOME STATEMENTS

A tax audit is an examination of your tax return by an outside agency to verify that
income and deductions filed are accurate. The income tax law asks the taxpayers to get
the audit of accounts of their business or profession done according to provision of
income tax law.
The provisions for tax audits in India are covered under section 44AB of the Income
Tax Act, 1961. The definition of tax audit as per income taxi ndia is the audit conducted
by the chartered accountant of the accounts of the taxpayer in pursuance of the
requirement.
Financial statement audits are a routine part of closing your financial books. Audits help
to ensure the accuracy of the accounting data used to compile the statements as well as
the overall calculations. An income statement audit can help you isolate mathematical
errors and ledger discrepancies or give you peace of mind before you file the income
statement during closing.

Statement Calculations
The first step in auditing financial statements is to verify the summary calculations.
Start with the income section, confirming that the total revenue amount is equal to the
sum of the income lines. Repeat this process for the expense category. Manually
calculate the difference between the revenue and expense numbers to verify the equity
section, as owner's equity is simply the difference between the revenue and expenses.

Income Details
Once you determine that the calculations on the income statement itself are accurate,
you need to review the detail that contributes to the figures. Pull summary transaction
reports from the general ledger for each revenue account. Review the overall data on the
summary reports for accuracy. Run transaction-level reports for the accounts so that you
can view the details to confirm that the summary report figures are accurate. Each
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transaction-level report shows you what has posted to the account. Compare the
transactions in the ledger to the hard copy files, such as invoices or check stubs that
support the journal entries, to confirm that they were posted correctly.

Expense Review
Pull ledger reports of the transactions in the expense accounts. Review the transaction
detail reports for each expense account to confirm that the expense totals on the income
statement report are accurate compared to the ledger activity. View the detail level in the
ledger for the individual transactions posted in the period to confirm that they were
recorded properly. Check the dates on the expenses to be sure that they apply to the
period in question, and manually verify the calculations by adding them up yourself,/ to
ensure that the recorded totals are correct.

Paper Audit Sampling

When you complete a full audit of the income statement, select a few transactions from
each relevant account, such as a few credits posted to each revenue account and a few
payments issued from each expense account. Request the documentation of the
transactions you selected to complete a sample audit of the account activity. The
documentation in question would consist of check stubs and invoices or paperwork filed
to support journal entries. Check the calculations of the invoices or the payment
vouchers, and verify that the entries in the system match the documentation.

AUDIT PROCEDURES FOR EXPENSES

Internal controls such as routine accounting audits are essential to ensuring that
financial records and cash transactions are accurate and complete. A detailed transaction
review helps you be sure that your cash handling processes are followed. Business
expenses are a major part of financial statements and overall financial performance, and
auditing the accounts regularly protects your business from inaccuracies and fraud.

Transaction Detail
Inspect the transaction-level detail of ledger accounts for each expense account you
selected. Reviewing the ledger detail helps to identify transactions that may not belong
or were posted incorrectly. Select a representative sample of those transactions and
request the documentation, including invoices, journal entries and cancelled checks.
Compare these documents to the transaction that posted to verify that everything
matches. Research and obtain justification for any variance.

Accounts Payable
Request an aging report for the accounts payable ledger, and review the transactions to
ensure that payments are issued in accordance with the internal controls. Choose a
sample of the transactions to inspect the documentation associated with it. Each
document should reflect signatures, initials and notes from each step of the approval
process. Every payment requires authorization from each person defined by the internal
control document.

Justified Expenses
Select a sample of material expenses, or expenses that have a significant effect on the
company's financial position. Research each expense to be sure that the item or service
was received and is justified according to standard business operations.

Bank Reconciliation

Inspect the bank statements for the period in question, and match the expenses to
transactions on the bank statement to validate the amounts. This is necessary to reduce
the risk of theft by an employee with access to payable transactions.

INTERPRETATION OF LEDGER ACCOUNT

MEANING
The final destination of all entries made in the journal is the ledger as they are all
subsequently transferred to it. The ledger is the most important book under the doubleentry system. Ledger is a permanent book of record, which contains all accounts
relating to the financial transactions of a business. Therefore, it is also called the book
of accounts. An account contained in the ledger book is called ledger account.
A ledger account is a statement shaped liked an English alphabet 'T' that
systematically contains all financial transactions relating to either a particular person or
thing for a certain period of time. Ledger account provides financial information such as
how much a particular person owes to or from the business, what is the value of
particular asset the business possesses at a point in time, or what is the amount of
particular head of expense or income business has incurred or earned during a particular
period., The ledger book, therefore, contains the details of all classified information of
financial transactions of the business. It is also called the principal or main book of
accounts. It collects records and provides the financial information of the business in a
classified manner so as to ascertain the profit and loss and financial position of the
business at a certain point of time.

DEFINITION
Collection of an entire group of similar accounts in double-entry bookkeeping.
Also called book of final entry, a ledger records classified and summarized financial
information from journals as debits and credits, and shows their current balances. In
manual accounting systems, a ledger is usually a loose leaf binder with a separate page
for each ledger account.

The ledger provides a complete record of financial transactions over the life of the
company. The ledger holds account information that is needed to prepare financial
statements and includes accounts for assets, liabilities, owners' equity, revenues and
expenses.

OBJECTIVES OF LEDGER ACCOUNTS

To Help Ascertain Profit Or Loss
The ledger is a book of accounts relating to all the financial transaction of the
business. It contains the accounts of all expenses, losses, incomes and gains. Therefore
it helps to prepare the profit and loss account of the business so as to ascertain the profit
earned or loss suffered during a specified period.

To Help Reveal The Financial Position

The ledger also contains the accounts of the financial transactions relating to
capital, all liabilities and assets of the business. With the help of the balances of these
accounts and profit and loss of the business, a balance sheet may be prepared to show its
financial position at a certain point in time.

To provide classified financial information

The ledger is a permanent book of record which contains a number of accounts of
different subjects. Its purpose is, therefore to provide classified financial information
about the subjects such as a person, asset and an expense or income.

To Provide Check On Arithmetical Accuracy

The fundamental double-entry principle provides that debit is always equal to
credit or vice verse. Since the ledger account is prepared under the double-entry system,
it helps to prepare a trial balance that provides a check on the arithmetical accuracy of
the recording transactions in the books of accounts.

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Introduction of Hospital and Club

Hospital
A hospital is a health care institution providing patient treatment with specialized staff and
equipment. The best-known type of hospital is the general hospital, which has an emergency
department. A district hospital typically is the major health care facility in its region, with
large numbers of beds for intensive care and long-term care. Specialized hospitals include
trauma centers, rehabilitation hospitals, children's hospitals, seniors' (geriatric) hospitals, and
hospitals for dealing with specific medical needs such as psychiatric problems (see
psychiatric hospital), certain disease categories. Specialized hospitals can help reduce health
care costs compared to general hospitals. A teaching hospital combines assistance to people
with teaching to medical students and nurses. The medical facility smaller than a hospital is
generally called a clinic. Hospitals have a range of departments (e.g., surgery, and urgent
care) and specialist units such as cardiology. Some hospitals will have outpatient departments
and some will have chronic treatment units. Common support units include a pharmacy,
pathology, and radiology.
Hospitals are usually funded by the public sector, by health organizations (for profit or
nonprofit), health insurance companies, or charities, including direct charitable donations.
Historically, hospitals were often founded and funded by religious orders or charitable
individuals and leaders.[1] Today, hospitals are largely staffed by professional physicians,
surgeons, and nurses, whereas in the past, this work was usually performed by the founding
religious orders or by volunteers. However, there are various Catholic religious orders, such
as the Alexias and the Bon Secours Sisters, which still focus on hospital ministry today, as
well as several Christian denominations, including the Methodists and Lutherans, which run
hospitals.[2] In accord with the original meaning of the word, hospitals were originally
"places of hospitality", and this meaning is still preserved in the names of some institutions
such as the Royal Hospital Chelsea, established in 1681 as a retirement and nursing home for
veteran soldiers.

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TYPES
General
The best-known type of hospital is the general hospital, which is set up to deal with many
kinds of disease and injury, and normally has an emergency department to deal with
immediate and urgent threats to health. Larger cities may have several hospitals of varying
sizes and facilities. Some hospitals, especially in the United States, have their own ambulance
service.
District
A district hospital typically is the major health care facility in its region, with large numbers
of beds for intensive care and long-term care. In California, "District hospital" refers
specifically to a class of healthcare facility created shortly after World War II to address a
shortage of hospital beds in many local communities. Even today, District hospitals are the
sole public hospitals in 19 of California's counties, and are the sole locally-accessible hospital
within 9 additional counties in which one or more other hospitals are present at substantial
distance from a local community. Twenty-eight of California's rural hospitals and 20 of its
critical-access hospitals are District hospitals.
Specialized
Specialized hospitals include trauma centers, rehabilitation hospitals, children's hospitals,
seniors' (geriatric) hospitals, and hospitals for dealing with specific medical needs such as
psychiatric problems (see psychiatric hospital), certain disease categories such as cardiac,
oncology, or orthopedic problems, and so forth. In Germany specialized hospitals are called
Fachkrankenhaus; an example is Fachkrankenhaus Coswig (thoracic surgery).
A hospital may be a single building or a number of buildings on a campus. Many hospitals
with pre-twentieth-century origins began as one building and evolved into campuses. Some
hospitals are affiliated with universities for medical research and the training of medical
personnel such as physicians and nurses, often called teaching hospitals. Worldwide, most
hospitals are run on a nonprofit basis by governments or charities. There are however a few
exceptions, e.g. China, where government funding only constitutes 10% of income of
hospitals.
Teaching
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A teaching hospital combines assistance to people with teaching to medical students and
nurses and often is linked to a medical school, nursing school or university.
Clinics
The medical facility smaller than a hospital is generally called a clinic, and often is run by a
government agency for health services or a private partnership of physicians (in nations
where private practice is allowed). Clinics generally provide only outpatient services.
Departments
Resuscitation room bed after a trauma intervention, showing the highly technical equipment
of modern hospitals
Hospital has departments and Each is usually headed by a Chief Physician. They may have
acute services such as an emergency department or specialist trauma centre, burn unit,
surgery, or urgent care. These may then be backed up by more specialist units such as:

Emergency department
Cardiology
Intensive care unit
Pediatric intensive care unit
Neonatal intensive care unit
Cardiovascular intensive care unit
Neurology
Oncology
Obstetrics and gynecology

Some hospitals will have outpatient departments and some will have chronic treatment units
such as behavioral health services, dentistry, dermatology, psychiatric ward, rehabilitation
services, and physical therapy.
Common support units include a dispensary or pharmacy, pathology, and radiology, and on
the non-medical side, there often are medical records departments, release of information
departments, Information Management (aka IM, IT or IS), Clinical Engineering (aka
Biomed), Facilities Management, Plant Ops (aka Maintenance), Dining Services, and
Security departments.

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Club
A club is an association of two or more people united by a common interest or goal. A service
club, for example, exists for voluntary or charitable activities; there are clubs devoted to
hobbies and sports, social activities clubs, political and religious clubs, and so forth.
TYPES
Buying club
Buyer's clubs or buying clubs are clubs organized to pool members' collective buying power,
enabling them to make purchases at lower prices than are generally available, or purchase
goods that might otherwise be difficult to obtain. There are many legitimate buying clubs
for example, food buying clubs but many is unauthorized credit card billing scams, in
which a customer is induced to enroll in a free trial of a buyer's club membership, and then
unexpectedly billed when the trial ends.
Country club and Sports club
Country clubs offer a variety of recreational sports facilities to its members and are usually
located in suburban or rural areas.[1] Most country clubs have golf. Swimming pools, tennis
courts, polo grounds and exercise facilities are also common. Country clubs usually provide
dining facilities to their members and guests, and frequently host catered events like
weddings. Similar clubs in urban areas are often called athletic clubs.
A sports club can thus comprise participants (not necessarily competitors) or spectator fans,
or both. Some organizations exist with a mismatch between name and function. The Jockey
Club is not a club for jockeys; but rather exists to regulate the sport of horseracing; the
Marylebone Cricket Club was until recently the regulatory body of cricket.
Hobby club
Hobbies are practiced for interest and enjoyment, rather than financial reward. Examples
include science fiction clubs, ham radio, Model Railroading, collecting, creative and artistic
pursuits, making, tinkering, sports and adult education. Engaging in a hobby can lead to
acquiring substantial skill, knowledge, and experience. However, personal fulfilment is the
aim.
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Personal club
Personal Clubs are similar to Hobby Clubs. These clubs are run by a few close friends. These
friends or family members do things they like to do together. They might even make a
personal website for their club.

STEPS ON AUDIT OF HOSPITAL AND CLUB

Steps on Audit of Hospital
The special steps involved in audit of a Hospital or a dispensary run by a trust are stated
below:
1) Trust Deed:Examine the Trust Deed or Regulation in the case of the Hospital and note all the provision
affecting accounts.
2) Minutes:Read through the minutes of the meeting of the Managing Committee or Government Body,
noting resolutions affecting accounts to see that these have been duly complied with,
specially the decision as regards the operation of bank accounts and sanctioning of
expenditure.
3) Register of Patients:Vouch the Register of patients with copies of bills issued to them. Verify bills for a selected
period with the patients occupancy record to see that the bills have been correctly prepared.
Also see that bills have been issued to all patients from whom an amount was recoverable
according to the rules of the hospital.
4) Cash collections:Check cash collections as entered in cashbook with the receipts, counterfoils and other
evidence for example, copies of patient bills, counterfoils of dividend and other interest
warrants, copies of rent bills etc.
5) Investment Income:-

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See by reference to the property and Investment Register that all income that should have
been received by way of rent on properties, dividends, and interest on securities settled on the
hospital, has been collected.
6) Legacies: Ascertain that legacies and donations received for a specific purpose have been applied in the
manner agreed upon.
7) Donations: Trace all collection of subscription and donations received for a specific purpose have been
applied in the manner agreed upon.

8) Expenses:Vouch all purchase and expenses and verify that the capital expenditure was incurred only
with the prior sanction of the Trustees or the Managing Committee and the appointments and
increments to staff have been duly authorized .Compare and that appointments and
increments to staff have been duly authorized Compare the totals of various items of
expenditure and income with the amount budgeted for them and report to the trustees or the
Managing Committee significant variations which have taken place.
9) Stocks: Examine the internal check as regards the receipt and issue of stores; medicine, linen,
apparatus, clothing, instruments ,etc .so as to insure that purchases have been properly
recorded in the stocks register and that issues have been properly recorded in the stock
register and that issues have been made only against proper authorization.
10) Grants: Verify that grants, if any, received from government or local authority have been duly
accounted for. Also, that refund in respect of taxes deducted at source has been only against
proper authorization.
11) Depreciation: See that depreciation has been written off against all the assets at the appropriate rates.
12) Physical verification: 16

Inspect the bonds, share scrip, title deeds of properties and compare their particulars with
those entered in the Property and Investment Registers. Obtain inventories especially of
stocks and stores as at the end of the year and check a percentage of the items physically; also
compare their total values with respective ledger balances.

Steps on Audit of club

1) Constitution:Examine the constitution, powers of governing body and relevant rules relating to preparation
and finalization of accounts.
2) Entrance Fees:- Vouch the receipt on account of entrance fees with members application counterfoils issued
to them, and minutes of the managing committee.
3) Subscription:Vouch members subscription with the counterfoils of receipts issued to them Trace receipts
for a selected period to the register members: reconcile the amount of total subscription due
with the amount collected and outstanding.
Check totals of various columns of the register of members and tally them across. See the
Register of members to ascertain the members dues which are in arrears and enquire whether
necessary steps have been taken for their recovery. The amount considered irrecoverable, if
any should be written off.
4) Cut-off:Ensures that arrears of subscription for the previous year have been correctly brought over
and arrears for the year under audit and subscription received in advance have been correctly
adjusted.
5) Supplies & Services:Verify the internal check as regards members being charged with the price of the foodstuffs
and drink provided to them and their guest as well as with the fees chargeable for the special
service rendered such as billiards, tennis, etc. Trace debited for the selected period from
subsidiary registers maintained in respect of supplies and service to members to confirm that
the account of every member as been debited with the amounts recoverable from him.
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6) Purchases:Vouch purchase of sports items, Furniture, crockery, etc. and trace their entries in to the
respective stock registers. Vouch purchase of food stuffs, cigars, wines etc. and trace their
sale price so as to confirm that the normal rates of profit have been earned on their sales .The
stock of unsold provision and stores ,at the end of the year should be verified physically and
its valuation checked.
7) Stock:Check the stock of furniture, sports material and other assets physically with the respective
stock registers or inventories prepared at the end of the year .
8) Investments:
Inspect the share scrips and bonds in respect of investments, check their current Values for
disclosure in final accounts, also ascertain that the arrangements for their custody are
satisfactory ,check the accrual of income there form and provision of income- tax thereon.
9) Gaming Machine Accountability:a) Detection of Theft
i) Checking of machines at least on a monthly basis, with jackpot payments shown in the
payout book to the individual amount for that combination shown on the prize schedule of the
machine. For example, record three aces as 3xA rather than AAA, which can be altered
in the shape of a fourth or fifth A.
ii) Check clearances from cash boxes with cash box meters on at least a monthly basis.
b.) Reconcile the clubs financial records to the net income from poker machines on at least a
monthly basis to ensure all poker machine revenue is accounted for in the clubs income
records.
c) Check on at least a monthly basis that cancels credit payments balance with the book
payouts.
10) Accounting and Expenditure Records:a) General
Records of payments should be appropriately maintained in either a pre-numbered book
providing full details of transactions, i.e. Cheque number, date, payee and amount, or in a
computerized or electronic cheque register.
b) Cheques
i).The pre-signing of cheques should be prohibited and all blank cheques kept in a secure
place.
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ii) All expenses payable by cheque should be detailed on a cheque requisition form, where
appropriate, and supported by source documents signed by an authorised officer. Cheques
should only be signed by approved signatories, who examine and initial any supporting
documentation.
c. Petty Cash
i) Petty cash vouchers should have supporting documentation attached and be properly
authorized.
ii) Petty cash accounts should be reconciled on at least a monthly basis.

WHY AUDIT IS DONE OF HOSPITAL AND CLUBS

There are many reasons one might want or need to do audit. It includes:
1) Required measurements:The Health plan Employer Data and Information Set (HEDIS) is the most widely used set of
performance measures in the managed care industry. Health plans are required to report this
large set of measures annually. Employers and prospective members can then compare plans
on their quality of care. Chart audits are often part of the data collection methods for these
measures,
2) Administrative requirements:Federal regulations require medical records documentation to justify charges coded and billed
for. Audits are often used to measure compliance.

3) Research:Medical records contain a wealth of data that may be useful in research, from measuring the
prevalence of symptoms/diseases to comparing the impact of various treatment strategies.
Research applications of audits can be clinical (such as reviewing the prevalence of blindness
in diabetic and non-diabetic patients) or operational (such as reviewing the hospital length of
stay for surgeries performed on Monday vs. Friday).
4) Standard:Clinical audit offers a way to assess and improve patient care, to uphold professional
standards and do the right thing.
5) Service:Through clinical audit, healthcare staff may identify and measure areas of risk within their
service.
6) Quality improvement:Regular audit activity helps to create a culture of quality improvement in the clinical setting.
Perhaps the most desirable reason for chart audits is to measure quality of care in order to
improve it. Health professionals, frustrated with processes that dont work as they should, can
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use audits to document that something is wrong, find the defect in the process, and fix it.
Practices and health systems that agree upon guidelines and processes of care can use audits
to assess how well they are following them.
You can conduct a chart audit on virtually any aspect of healthcare. The important point is
that the data you are reviewing should be accurate and must be available in the medical
record. It is also important to note that a chart audit will involve reviewing data that may be
deemed confidential; therefore, it is important to check the appropriate institutional
guidelines before rev
7) Evidence:Clinical audit is educational for the participants. It involves being up to date with evidence
based good practice.
8) Job Satisfaction:It offers an opportunity for increased job satisfaction.
9) Professional Practice
It is increasingly seen as an essential component of professional practice.

10) Effectiveness
It can improve the quality and effectiveness of healthcare.

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Audit Conclusion
Many of the original objectives from the lease of the rail freight network have been achieved,
including removing government from operating the freight rail network, and its associated costs, and
paying down debt. The volume of freight carried on the network has increased and the condition of
the standard gauge lines, and the narrow gauge lines used for mineral freight, has improved.
The condition of the narrow gauge lines used primarily for carrying grain has degraded. The grain
lines have required substantial government funding to remain in service. Two of the uneconomic
Tier 3 grain lines have been placed in care and maintenance, and without further government
funding, the remaining eight are likely to be taken out of service after 2013. Ongoing government
funding was anticipated at the time of the lease, but not quantified, so it is not possible to conclude
whether actual levels of support are more or less than originally estimated.
To date, PTA has managed the lease without a formal risk-based contract management plan, making it
difficult for PTA to demonstrate that it has fully considered the impact of decisions about the lease
and network on the States interests over the life of the lease. PTA is now preparing a plan, which
should help better manage risks and to protect the States interests, while also enabling PTA to
maintain the light touch approach envisaged in the lease.
Hospital Audit Perform alternative audit procedures designed to obtain relevant and reliable audit
evidence .If the auditor concludes that managements refusal to allow the auditor to send a
confirmation request in unreasonable or the auditor is unable to obtain relevant and reliable audit
evidence from alternative audit procedures, the auditor shall communicate with those in charge of
governance and also determine its implication for the audit and his opinion

Club Audit Fact whether such expenses are incurred in the course of business or whether they
are of personal nature should be ascertained. If they are personal in nature, they are of
personal nature should be ascertained. If they are to be shown separately under Clause 17(b).
Hence, the tax auditor has to report the payments to clubs under Clause 17(d) of Form 3 CD.
In conclusion, there are many opportunities to improve the maintenance performance at
<Insert Site>. The challenge is to ensure focus on making the most significant improvements
first, and in being selective about the areas for improvement to focus on. Trying to make too
many improvements simultaneously frequently means that little is achieved at all.
Nevertheless, this improvement journey should be guided by a longer-term vision and plan
and it is strongly recommended this plan be developed as the first step and your people be
involved in the plan's development and that its progress be regularly communicated to all
personnel.
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Some high priority opportunities for maintenance to improve their performance have been
outlined and all the recommendations in this report have been prioritized as shown in
Appendix C.
If the recommendations of this report are adopted, then your Operations should see
significant benefits.
If there are any queries on any aspect of this report, please direct them to the Author via our
head office.
Hence Both the Cases the audit is Done with Systematically.

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REFERENCE
http://www.noca.ie/
The National Office of Clinical Audit (NOCA). Established in 2012, NOCA
will
design, develop and implement national clinical audit programmers in order to
improve patient outcomes and promote patient safety in hospitals.
http://www.icgp.ie/audit
Irish College of General Practitioners website. Provides specific guidance and
tools
for clinical audit in general practice.

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