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Industries/Healthcare

Audit file prep for healthcare practices.

Healthcare revenue is booked gross and collected net. The standard pack gives your reviewer a tied-out file, so the time goes to the judgment calls on revenue and receivables.

What every file gets

The pack is the same on every file, in every industry. It is built from the client’s QuickBooks books and the documents your firm sends.

Lead schedules
Every trial balance account classified to a US GAAP line, in Excel and PDF, with prior-year final, per-books, adjustment and final columns.
Tie-out of the draft
The client’s draft statements re-added and every line agreed to the trial balance. Differences are findings about the draft, never silent changes to the books.
Fixed-rule ledger checks
Revenue cutoff, duplicate payments, journal entry testing, split purchases, opening balances, flux analysis, bank reconciliation and more. Each finding names its rule.
Proposed entries
A finding cites the evidence line and the standard, and proposes an adjusting entry. Nothing is posted to the books.
Review trail
A reviewer decides each finding and records a reason. Initials and dates travel with the working papers.
Inputs received and missing
The file shows what arrived and what did not, tied to the findings that need it.

Where the judgment sits on a healthcare file

These areas decide the file. Industry-specific schedules are not part of the standard pack. Whether CORAA drafts any of them for a given file is agreed on the intake call before anything is uploaded, and what is not agreed stays with your team.

Areas your team will spend its time on

  • Net patient revenue roll
  • Receivable aging and allowance
  • Payroll and benefits tie-out
  • Supplies, equipment and leases

Typical PBC items from the client

PBC items from the client

  • Practice management system revenue and receivable reports
  • Payer remittance summaries and contractual adjustment reports
  • Allowance and write-off listing with approvals
  • Payroll registers and payroll tax filings
  • Lease agreements and equipment financing documents
  • Bank and loan statements through year end and after

Where healthcare files go wrong

Gross versus net revenue
Revenue posted at billed charges with the adjustment booked late, or never.
Receivables from payers
Old balances sitting at full value.
Owner compensation and related parties
Practice owners’ pay, loans and shared costs with affiliated entities need their own disclosure schedule.

What stays with your firm on healthcare files

Fulfilled by CORAA means CORAA AI drafts the file and CORAA Network reviewers clear every flag, with a line-by-line review log. Your manager and partner then review it as they would any staff-prepared file. Your firm keeps the client, the engagement letter, the professional judgment and the signature.

CORAA never signs, issues or reports on anything, and never contacts your client unless you ask us to. Your first audit is free, so you can judge the pack on a real file. After that the fee is flat, set by entity size, and messy books are included.

Free resources for this work

Guides, templates and calculators on this site that cover the same ground. All free to use.

GuideAuditing a Healthcare Practice: Patient Revenue and Contractual AdjustmentsGuideDental and Physician Practice Audits: PBC List and Red FlagsGuideHospital Audits: Net Patient Service Revenue, Cost Reports and Charity CareGuideMedicare Cost Reports and Third-Party Settlements: How to Audit the Settlement ReceivableTemplateAudit Program: Medical PracticeTemplateAccounts Receivable Aging and Allowance WorkpaperToolAccounts Receivable Aging & CECL Allowance Calculator (ASC 326)GuideSenior Living Audit Guide: Entrance Fees and Resident Contracts

Questions firms ask

Physician, dental and specialty practices, clinics and similar entities that your firm audits or reviews. For larger facilities, the specialized settlement and regulatory work stays with your firm, and whether a file fits is settled on the intake call.
No. CORAA works from the ledger, the practice management reports and the financial documents the client provides. We ask only for what the file needs.
CORAA is ISO/IEC 27001:2022 certified, and files are encrypted at rest and in transit. Before any upload you get our security and data-handling pack, an NDA and a data processing agreement.
Your firm. The judgment on whether the allowance is adequate stays with your reviewer. The standard pack’s credit-loss check flags receivables that are old with no allowance recorded.
Your first audit is free. After that, a flat fee per audit, set by entity size. Messy books are included, never a surcharge.

Sources: FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606) · FASB ASU 2016-02, Leases (Topic 842)

More in industries
IndustriesNonprofit organizationsRestricted net assets, grants and functional expenses: the pack, the PBC list and the judgment areas.IndustriesReal estate companiesRent, property cost and debt: the pack, the PBC list and the judgment areas.IndustriesStaffing firmsGross versus net revenue, payroll liabilities and receivables: the pack, the PBC list and the judgment areas.
For US CPA firms

Join the CORAA waitlist

CORAA AI drafts audit working papers from your client’s QuickBooks books and does the first pass: lead schedules, tie-out, memos, draft notes and letters. CORAA Network reviewers clear every finding. Your firm reviews and signs.

  • First audit free, so you can judge the quality on a real file
  • Flat fee by entity size; messy books included
  • We work only with CPA firms, never their clients
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