Has there ever been an outside audit of your practice? Not the IRS, and not your accountant, but a completely unbiased third party review of your financial systems and procedures.
Do you have controls in place to help prevent embezzlement? Do you have concerns?
Corporations and non-profits have audits annually. Why is this not standard practice for professional practices?
Do you wonder if everything is going well in your practice, in regard to the financial systems?
Are you about to bring in an associate or a partner? Are you thinking of selling your practice?
A Financial Practice Analysis is actually the first level of a fraud examination. It is completed remotely as to not disturb your practice. It focuses on the aspect of your practice that is not owner controlled. If the practice owner controls the accounts payable (checks and credit card), then it is not necessary to include the accounts payable.
- Compares the practice software with bank records, analyzing patient, insurance and patient plan payments.
- An in-depth analysis of the adjustment reports with the audit trail reports
- Examines existing adjustments, whether they are acceptable and appropriate
- Evaluates additional areas recognized as potential breaches of internal controls, often resulting in embezzlement
Two reports are provided at the conclusion.
A final summary report provided to the doctor includes:
- Collection discrepancies
- Potential fraudulent adjustments
- Audit trail analysis concerns
- Supporting documentation and spreadsheets
An Internal Controls report provided to the doctor includes:
- Problem areas resulting in weak internal controls
- Suggested ways to strengthen the practice’s internal systems and procedures
It typically takes 2-3 weeks to complete, dependent upon available necessary documentation.
In addition, a one hour follow-up phone call with the doctor will address any action plans determined by the review or any questions.
If you have concerns regarding an embezzlement within your practice, please read more here.