Patton-Fuller Audit

Audit

An audit is basically a review. When balance sheets and other documents containing the organization’s financial data become available at the end of the year or fiscal year an audit is done to reveal any mistakes and to then make the appropriate corrections. The unaudited balance sheet for the Patton-Fuller Community Hospital shows that in 2009 there were 59,787 patient accounts receivable. After an audit was done it was found that there were actually 58,787. There is another example on the Patton-Fuller statement of revenue and expense sheet. In 2009, the hospital’s total expenses totaled $462,293. The audit found that this information was incorrect as well. The actual expenses in 2009 were $463,293. The Patton-Fuller Community Hospital has an audit system implemented specifically to find mistakes such as these.

The difference between Audit and Unaudit

Comparing the two financial statements of Patton-Fuller Community Hospital for the years of 2008 and 2009, there seems to be a discrepancy or call it a loss in the 2009 audited portion of the patient account receivable. In the unaudited statement, the balance sheet showed a total amount of $59, 787 while the audited statement of the balance sheet of 2009 showed a figure of $58,787 a difference of about $ 1000,000.00 when calculated. Also from the net allowance for bad debts there was a decline in figures on the unaudited statements in both 2009 and 2008; a difference of $1000, 000 in 2009 balance sheets, and $756,000 in the 2008 balance sheet. Comparing the total current liabilities, total liabilities, total liabilities and equity, and maximum annual debt services, the figure seem to be matching between the audited and unaudited balance sheets for both years.

Relationship between Revenue Sources and Expenses