Unseen Question 2

Canterlot Chartered Accountants is a successful mid-tier accounting firm with a large range of clients across Australia. During the 2020 year, Canterlot gained a new client, Cloudsdale Medical Group (CMG), which owns 100 per cent of the following entities:

- Everfree Forest Hospital, a private hospital group

- Calendula Care Pty Ltd, a private nursing home

- Tempo Cancer Treatment Limited (TCTL), a private oncology clinic that specialises in the treatment of cancer.

Year-end for all CMG entities is 30 June. Everfree Forest Hospital is a private hospital group generating revenue from patients for stays in the hospital and medical practitioners in private practice for use of the hospital facilities and provision of nurses, anaesthetists, operating theatres and supplies.

You are working on the 2020 engagement for Everfree Forest and your assurance services manager has requested you use substantive analytical procedures to calculate Everfree Forests estimated revenue for patients staying in the hospital, excluding medical procedures and ancillary costs such as medication.

Describe all the key information required to estimate Everfree Forests revenue for patients staying in the hospital.