☰ Menu

Advancing Community Hospitals



Internal Audit


Today’s internal auditors roam freely throughout the entire enterprise. They do in effect what the CEO would do to appraise activities, given sufficient time and resources.


Think of the internal auditor as more consultant than verifier. Internal auditors are dedicated to improving systems rather than detecting errors, more interested in leaving every place they evaluate a little better than they found it. Internal audit brings a professional level of objectivity and independence.


CHC Consulting’s Internal Audit Process is designed to identify key risks that could prevent the company from meeting its objectives, determine if internal controls are operating effectively and efficiently, and keep the Board and the Audit Committee informed throughout the assessment.


Areas of focus typically include:

  • Revenue Cycle Processes
  • Cash Management
  • Physician Relationships
  • Ethics and Compliance
  • Purchasing and Receiving
  • Financial Operations
  • Human Resources
  • Accounts Payable Processing
  • Due Diligence
  • Policies and Procedures
  • System Implementations
  • External Audit Communications and Co-sourcing
  • Other Areas Identified by Management

The Internal Audit Process involves three key phases.


Internal Audit Process


The three phases of an Internal Audit Process cover governance, risk assessment and execution of the audit plan.


PHASE I – Internal Audit Governance

  • Review the hospital audit committee charter and align it with the Standards set forth by the Institute of Internal Auditors.
  • Develop the internal audit department charter and internal audit policies to establish the foundation for performing, documenting and reporting on assessments.
  • Identify the reporting relationship between the internal audit function and hospital leadership.


PHASE II – Risk Assessment and Audit Planning

  • Meet with the management team and the audit committee to kick off the risk assessment process.
  • Conduct management surveys to help identify key risks to the hospital.
  • Compile survey responses and prioritize risks based on management feedback and self-assessment tool.
  • Create the internal audit plan of recommended audit areas to focus on.
  • Present risk assessment report and internal audit plan to senior management and the Audit Committee.

PHASE III – Execute the Audit Plan

  • Perform a review from the approved audit plan.
  • Present audit findings and issue report to management.
  • Review management’s action items to meet audit recommendations and present final report to the Audit Committee.
  • Perform follow-up 60 to 90 days after receipt of action plans to assess management’s progress.

We improve financial performance for hospitals facing financial crisis and for those looking to build upon their current success.

Advancing Community Hospitals