Clear View, a radiology practice in Pretoria has 15 branches at hospitals and doctor’s practices in the area, some of which are only 3 kilometres apart. All bookings are managed separately by each individual practice. At each practice, patients have to complete the relevant forms in the admission department, go for their relevant tests at the consultation rooms and then return to the admission department for payment. The services provided by Clear View include:

X-rays, Mammograms, MRI scans ,CAT and PET scans. MRI scans

You investigated the number of patients that were seen daily at three different locations that are within 6 kilometres from each other.

	Capacity/ Day	JKR Hospital			LCM Hospital			ZAF Hospital
Day		Mon	Tue	Wed	Mon	Tue	Wed	Mon	Tue	Wed
Mammograms	15	22	15	23	14	16	10	10	10	10
MRI scans	15	12	10	5	10	12	10	5	2	3
CAT and PET scans	10	11	9	11	8	10	10	6	5	7

To keep the machines operational, each machine is required to undergo a daily maintenance routine, but this is not usually performed since there are too many patients waiting. Last month the PET scan machine was down for 4 days at JKR Hospital because of lack of maintenance and the patients were not being able to get the scans in hospital. Complains from patients were received on long waiting time at the admissions department for processing of their forms and payment of the consultations.  

The machines that are used for the tests, are imported and extremely expensive at over R5 million each. Clear View’s management would like to ensure that the use of the machines is maximised before committing to new purchases.

The following was obtained through discussion with the practice manager regarding the machine maintenance:

A1- Each machine is required to undergo a daily maintenance routine, but this has not been done due to high demand. Last month, one PET scan machine was not working for 4 days and this resulted in R52 000 worth of business being lost. You noted that the PET scan machines at ZAF Hospital is underutilised.

 

REQUIRED                                                                                                                                      Marks

2.1	Explain in your own words, the following terms: efficiency, effectiveness and economy in the context of a performance audit.	(6)
2.2	Formulate five (5) questions to put to the manager of the practice in order to obtain information about the efficient functioning of the processes at Clear View.	(5)
2.3	Formulate six (6) audit procedures that could be used to determine the efficient utilisation of resources in the processes at Clear View. Include the procedures that you performed to obtain the information about the number of patients seen per day.	(9)
2.4	Based on the discussion made in A1, complete an audit finding practically illustrating the different elements of an audit finding.	(5)