The purpose of an audit is to form a view on whether the information presented in the financial report, taken as a whole, reflects the financial position of the organisation at a given date

1. AUDIT

2. • Audit is the examination or inspection of various books of
accounts by an auditor followed by physical checking of
inventory to make sure that all departments are following
documented system of recording transactions.

3. MEDICAL AUDIT
Medical auditing is a systematic performance assessment within a healthcare
organization. Most healthcare elements can be audited, but many audits look at
components of payer reimbursement processes to evaluate compliance with
payer guidelines and federal and state regulations.
Medical audit is the examination of professional dealings by clinicians & their
verification according to the standards or criteria, on the basis of data collected
through professional accounting system in hospitals i.e. Medical Records.

4. History of
Medical Audit

5. History of
Medical Audit

9. TYPES OF MEDICALAUDIT:
Internal Audit (Peer Review)
Continuously by hospital staff.
Abstracting & classifying clinical record and evaluating quality of medical
care.
Review by practicing physicians.
External Audit
By outside agency.
Periodically tests completeness & accuracy of internal audit.
Review by non-medical administrators.

10. INTERNAL AUDIT
Internal audit is an independent management function, which involves a
continuous and critical appraisal of the functioning of an entity with a
view to suggest improvements thereto and add value to and strengthen
the overall governance mechanism of the entity, including the entity’s
strategic risk management and internal control system.

11. EXTERNAL AUDIT
An external audit is an independent examination or review of processes, procedures,
financial data or other aspects of an organisation conducted by an external party. This
external party may be a professional audit firm, an accounting firm or an independent audit
organisation that has no direct connection to the organisation being audited. External
audits are used to verify the accuracy, correctness, legality and reliability of information,
systems or processes in an organisation. The external party performs an objective
assessment and evaluates compliance with standards, regulations, policies or procedures.

12. **To the patient:
 Better care as scientific work is kept at highest plane of
efficiency.
 Attending clinician leave nothing undone.
 Technical staff ensures updating of knowledge &
techniques.
 Diagnostic facilities are up to highest available
standards.
 In patient services ensure prevention of infection &
other morbidity.
 Improvement in total care will Reduce Mortality Rate
**To the hospital:
 Analysis of professional work.
 Reveals weaknesses, if any.
 Emphasize points of strength.
 Ensures improvement in medical practice.
 Administration gets clear statements of the
results produced & can then compare with
comparable institutions.
 The above self-analysis enhances reputation
of the hospital.

13. **To the community:
 Curative–members of the community find themselves
be treated in accordance with the best medical care.
 Preventive- systematic examination of individuals, is
showing marked results in early diagnosis &
prevention of diseases
**To the clinician:
 Increased clinical efficiency by the procedure of
medical audit & associated staff conferences.
 Stimulus for CME.
 Knowledge of newer modalities of treatment,
variations in surgical techniques.
 Intellectual stimulus.
 Co-operation & fellowship is promoted.
 Serves to rouse the clinicians to perform at his/ her
best.

14. What are the advantages of external audits?
1.Objectivity: External audits are conducted by independent organisations or individuals who have no personal or
financial interest in the organisation being audited. This ensures an objective assessment as the auditors are
unbiased and have no internal conflicts of interest.
2.Credibility: External audits contribute to credibility and trust by providing independent confirmation of an
organisation's financial information, internal controls or other audited aspects. Audit results are more reliable to
stakeholders and the public and provide greater assurance about the integrity and accuracy of the information.
3.Compliance with standards: External audits help organisations ensure that they comply with applicable
standards, regulations or legal requirements. This is particularly important in areas such as financial reporting,
data protection, environmental management or quality assurance. External audits can identify and correct
potential violations or non-compliance.

15. 4. Identification of risks: External audits uncover potential risks, weaknesses or deficiencies in an
organisation's processes, systems or controls. This enables the organisation to identify these risks early and
take appropriate action to mitigate risks or improve processes.
5. Improving efficiency: External audits review an organisation's existing processes and systems. This can
help identify inefficiencies or unnecessary costs and highlight opportunities to improve efficiency and
effectiveness.
6. Promoting transparency: External audits play an important role in monitoring an organisation's
compliance with ethical standards and policies. They help prevent misconduct, fraud or unethical
behaviour and promote a culture of transparency and accountability.