Following special points must be considered while doing the audit of a hospital:

GENERAL

• The nature of the entity must be understood. It may be a sole proprietorship a partnership firm or a company. Auditor should make his audit programmed accordingly.
• Auditor should study the minutes of the meetings of the board of directors. It will provide information regarding the decisions made by the entity.
• He should study the internal control system present in the entity. It should be decided that whether reliance can be placed on it or not.

INCOME

• The main source of income of hospital is receipts from patients. The receipts of bills should be checked with the cashbook entries.
• Other source of receipts may be grants from different parties. These should be verified with their respective counterfoils and correspondence between the parties.
• Other receipts may be form rents, interest or dividends. These may be checked with their respective vouchers.

PAYMENTS

• All the purchase should be checked with their respective purchase invoices.
• Other items of expenditure should be vouched with their respective supporting papers.
• Proper division between the capital and revenue expenditure should be made.

ASSETS AND LIABILITIES

• Auditor should check the assets and liabilities appearing in the balance sheet on the date of the balance sheet. It should be checked that they are shown at true value. Proper depreciation should be provided on the assets.
• Asset and liabilities should be actually physically verified by the auditor on the balance sheet date if possible.
• It should be checked that the balance sheet and profit and loss account have been drawn according to the provisions of the act applicable to the business entity.

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