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.

BPHs 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 the result 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 BPHs 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).

Account		June 30, 2023		June 30, 2022
Cash and cash equivalents		$43,077		$36,361
Short-term investments		22,725		49,338
Patient accounts receivable, net		119,380		99,962
Inventory		10,740		10,056
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
		919,756		842,623
Accumulated depreciation		343,324		303,642
Property and equipment, net		576,432		538,981
Total current assets		233,286		225,962
Total assets		1,787,720		1,618,698

Assertions and audit procedures 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.