CASE 1 HALT VALLEY HOSPITAL SERVICE INC Halt valley hospital service, Inc, is a large healthcare service company that acquired W Wilson Hospital, an accurate care hospital, this past year This is a large facility with a typically long collection cycle for its patients accounts receivable During the annual audit, the Big four auditors supplied a year end aged accounts receivable trial balance to the internal audit staff Now, three months later, the internal audit team needs to determine subsequent collection on 22 56 patient accounts Questions State the audit objectives in determining subsequent collections, and discuss two functions in which the use of a computer would be helpful to the auditors in meeting that objective Describe the process, using transaction files that are also available, in narrative or flowchart form to summarize subsequent activity on each account Determine if the hospital is in compliance with the Health insurance portability and Accountability Act (HIPAA) of 1996 How would you approach this CASE 2 ACME INSURANCE CORPORATION The Acme Insurance Corporation is presently undergoing an audit by the state insurance commission The commissioners audit team would like to verify the companys total revenue The revenue transaction file contains 30 million transactions Each transaction is recorded individually with a summary file indicating premium paid year to date Their tax year ends 12 31, and the file is sequentially arranged by account number Questions The auditors before Sampling would like a Profile Of the number of transactions that occurred during each month of the tax year as well as range and frequency of Dollar value How would you like to meet this requirement Describe in detail the steps you would take to generate the transaction data, produce the desired confirmations, and meet the auditors additional requests Flowchart the solution to this problem

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CASE 1: HALT VALLEY HOSPITAL SERVICE INC Halt valley hospital service, Inc, is a large healthcare service company that acquired W. Wilson Hospital, an accurate-care

CASE 1: HALT VALLEY HOSPITAL SERVICE INC

Halt valley hospital service, Inc, is a large healthcare service company that acquired W. Wilson Hospital, an accurate-care hospital, this past year. This is a large facility with a typically long collection cycle for its patients accounts receivable. During the annual audit, the Big four auditors supplied a year-end aged accounts receivable trial balance to the internal audit staff. Now, three months later, the internal audit team needs to determine subsequent collection on 22.56 patient accounts.

Questions

State the audit objectives in determining subsequent collections, and discuss two functions in which the use of a computer would be helpful to the auditors in meeting that objective.
Describe the process, using transaction files that are also available, in narrative or flowchart form to summarize subsequent activity on each account.
Determine if the hospital is in compliance with the Health insurance portability and Accountability Act (HIPAA) of 1996. How would you approach this?

CASE 2: ACME INSURANCE CORPORATION

The Acme Insurance Corporation is presently undergoing an audit by the state insurance commission. The commissioners audit team would like to verify the companys total revenue. The revenue transaction file contains 30 million transactions. Each transaction is recorded individually with a summary file indicating premium paid year to date. Their tax year ends 12/31, and the file is sequentially arranged by account number.

Questions

The auditors before Sampling would like a Profile Of the number of transactions that occurred during each month of the tax year as well as range and frequency of Dollar value. How would you like to meet this requirement?
Describe in detail the steps you would take to generate the transaction data, produce the desired confirmations, and meet the auditors additional requests.
Flowchart the solution to this problem