Page 296 - CA Inter Audit PARAM

CA Ravi Taori

• Register of Patients: Vouch the Register of patients with copies of bills issued to them. Verify
bills for a selected period with the patients’ attendance 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.
(Register of Patients → Bills to all Patients → Attendance, Tests, Medicine Records)

• Reconciliation of Subscriptions: Trace all collections of subscription and donations from the
Cash Book to the respective Registers. Reconcile the total subscriptions due (as shown by
the Subscription Register and the amount collected and that still outstanding).
• Legacies and Donations: Ascertain that legacies and donations received for a specific
purpose have been applied in the manner agreed upon.
• Grants and TDS: Verify that grants, if any, received from Government or local authority has
been duly accounted for. Also, that refund in respect of taxes deducted at source has been
claimed.
• Income from Investments rent etc.: 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 have been collected.
• Collection of Cash: Check cash collections as entered in the Cash Book with the receipts,
counterfoils and other evidence for example, copies of patient’s bill, counterfoils of dividend
and other interest warrants, copies of rent bills, etc.
• (Patient Comes with Bill → Pays Cash → Receipt is Issued → Carbon Copy /
Counter Foil is Retained)
• (Other Receipts → Counterfoil of Interest, Dividend / Copies of Rent Bill)

➢ Major Expense —Authorisation / Depreciation
• Authorisation and Sanctions: Vouch all purchases and expenses and verify that the capital
expenditure was incurred only with the prior sanction of the Trustees or the Managing
Committee and that appointments and increments to staff have been duly authorized.
• Depreciation: See that depreciation has been written off against all the assets at the
appropriate rates.

➢ Major Assets – Investment / Inventories
• Investment Registers: Inspect the bonds, share scrips, title deeds of properties and compare
their particulars with those entered in the property and Investment Registers.
• Inventories: 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.
(Balance Sheet Value – Ledger Balance – Physical Verification)

➢ Other Points – Budgets / Management Representation
• Budgets: 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.
• Management Representation and Certificate: Get proper Management Representation
and Certificate with respect to various aspects covered during the course of audit.
Author’s Note
• Text in ITALICS are examples by author for better understanding of answer.
• This is a master answer you can write the relevant aspect of the master answer as per what
the question is asking.

QNO Audit of Hospital-Receipts- Old Course -- (P16M/N17E)
ADE.05 Bhaskar CNO - ADE.020
What steps would you take into consideration in auditing the receipts from patients of a Hospital?
Answer Refer CNO ADE.01- Major Income

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