Turner Valley Hospital plans to install a database management system, Hosp Info, that will maintain patient histories, including tests performed and their results, vital statistics, and medical diagnoses. The system also will manage personnel and payroll, medical and non-medical supplies, and patient and provincial health-care billings. The decision was taken by the board of the hospital on the advice of a consultant who was a former employee of Medical Data Services Inc., the developer of Hosp Info.

Turner Valley Hospital’s chief information officer has come to your accounting firm to ask for advice on what general controls she should ask Medical Data Services Inc. to install to preserve the integrity of the information in the system and to deal with privacy issues.

The system would permit data about patients to be entered by doctors, nurses, and medical technologists.

REQUIRED

a. Describe in general terms the controls you would suggest for the system as a whole.

b. Considering the nature of Turner Valley Hospital, describe potential risks the hospital should be concerned about with respect to Hosp Info.

c. What are the advantages of such a database management system?

d. How would the quality of general controls at the hospital affect your audit?