Review the items in exhibit 1.3, and determine which have the greatest opportunity for adjustments by the auditors. What can the fi nance staff do to reduce or eliminate audit adjustments?

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EXHIBIT 1.3. YEAR-END ACCOUNTING PROCEDURES, RIDGELAND HEIGHTS MEDICAL CENTER, DECEMBER 31, 2012 Financial Statement Account Chart of Due Name Accounts Name Procedure Date Cash Petty cash Verify balances are correct 1/16/13 accounts Accounts payable, Complete December and all 1/16/13 checking prior-month reconciliation; adjust G/L balance accordingly Payroll Payroll, checking Complete December and all 1/16/13 prior-month reconciliation; adjust G/L balance accordingly Investment Money market Tie out to bank statement 1/16/13 sweep