ResponseTo A Discussion
ResponseTo A Discussion
Oneof the major factors that contributes to success of a healthcarefacility as well as other organizations globally, is the effectivemanagement of their finances. The effectiveness of financialmanagement has been contributed by the performance of financialauditing at the end of organizations, financial years hence makingsure the organization has been effective in using its funds. Withreference to the above student response, it`s true that auditing hasa positive, effective towards financial management of health carefacilities as well as other business organizations. I do agree withhis view and response regarding financial auditing in healthcarefacilities as well as other organizations (Basu,2009).
Theauditing processes in healthcare organizations can be an effectiveways to prevent future frauds. I agree with the students` response,that, auditing is done with an objective of detecting fraud incidentsthat may have occurred within a financial year in an organization. Inauditing to prevention of fraud, auditing can as well help inpreventing embezzlementof assets, as well the menace of suboptimal supervision due toinadequate information on its processes. Moreover, auditing helps anorganization in allocating its resources effectively towards its mainobjective which would be to deliver effective and affordable healthcare services to the people in the case of hospitals and otherhealthcare facilities. Audit system is crucial in preventingdebilitating misstatements in an organizations report and records. Tosummarize on the benefits of auditing to a health care facility, aneffective audit system is significant for an organization as it helpsin the attainment of corporate objectives. Finally, it also helps inthe facilitation of supervision and monitoring, and maintenance ofadequate business records (Basu,2009).I concur with the students, that financial auditing in anorganization can have both direct and indirect impacts to itsperformance.
Inreference to the non-profit and profit making organizations, their accounting operations are different from each other. In addition tothe students’ comments on their differences, it’s essential tonote, just as their names suggest, the nonprofit organizations aren’tmeant to make any profits the case of the other organizations, whichare sorely run to make profits from their operations (McCarthyet al, 2012).This in turn contributes to the difference in their accountingmethods. As the nonprofit makes their statements around theiractivities, the profit making organizations base their accounting ona quarterly basis. For example, a nonprofit hospital or health centerhas its objective of improving people`s welfare, while a profitmaking organization is to improve their own status by maximizing theprofit while at the same time reducing the cost incurred. I concurwith the students` response that, accounting for profit and nonprofitmaking organizations differs to some extent (McCarthyet al, 2012).In addition to the differences highlighted in the response above,auditing remains a key practice within organizations as it helps inaccuracy an fairness in keeping accounting records within any givenorganization.
Basu,S. K. (2009). Fundamentalsof auditing.Delhi: Pearson.
McCarthy,J. H., Shelmon, N. E., & Mattie, J. A. (2012). Financialand Accounting Guide for
Not-for-ProfitOrganizations.Hoboken: John Wiley & Sons.