Analysis: Select three asset accounts that you consider significant accounts for BPH and explain why they are significant. For each significant account that you identify, determine the two most relevant assertions for that account and select one audit procedure that would provide sufficient appropriate audit evidence related to each of the relevant assertions.

Goodfellow & Perkins LLP is a successful mid-tier accounting firm with a large range of clients across Texas. During 2022, Goodfellow & Perkins gained a new client, Brookwood Pines Hospital (BPH), a private, not-for-profit hospital. The fiscal year-end for BPH is June 30. Goodfellow & Perkins is performing the audit for the fiscal year-end June 30, 2023.

BPH provides medically necessary care to patients, regardless of their ability to pay. Both uninsured and underinsured patients are offered discounts of up to 100% of charges based on their income as a percentage of the federal poverty level guidelines. BPH does not pursue collection of these accounts; therefore, they are not reported in patient service revenue and accounts receivable. The cost of providing the charity care is included in operating expenses.

BPH?s investments consist of mutual funds, common equities, corporate and U.S. government debt issues, state and municipal government debt issues, and trusts. A majority of the investments are theresult of charitable contributions to the hospital by generous donors. Earnings from the investments are used to cover the costs of the charity care. BPH is also eligible for certain government grants to help cover the costs of the charity care.

The breakdown by payor of BPH?s accounts receivable balance approximates the following:

Medicare....................................................16%Medicaid.....................................................12%Blue Cross..................................................19%Other insurance providers.......................33%Patients......................................................20%

The historical estimated allowance for uncollectible accounts is approximately 23%.?

The following table lists selected asset accounts for BPH as of June 30, 2023 and 2022 (amounts in thousands).

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June 30, 2023 June 30, 2022 Account $ 43,077 $ 36,361 Cash and cash equivalents Short-term investments 22,725 49,338 Patient accounts receivable, net 99,962 119,380 10,056 Inventory 10,740 Long-term investments 915,088 807,321 Property and equipment: Land 57,839 58,140 Buildings 577,546 556,590 Equipment and furniture 194,481 169,603 Construction in progress 89,890 58,290 842,623 919,756 Accumulated depreciation 343,324 303,642 Property and equipment, net 576,432 538,981 Total current assets 225,962 233,286 Total assets 1,787,720 1,618,698