If an audit is planned as either a 100 percent audit or a sample, what is the auditor expected to do?

If an audit is planned as either a 100 percent audit or a sample, what is the auditor expected to do?

• A. The auditor will prepare the budget for the audit.
• B. The auditor will perform the actual analysis of the suspect claims and detail the rationale for any error or code change, including the financial impact.
• C. The auditor will only review provider payroll records.
• D. The auditor will rely solely on data analytics without documentation.

Answer: (B)

When auditing, the key requirement is to substantively analyze suspect items and clearly document what changes are needed and why, including how those changes affect the finances. Even if the plan is a full audit or a sample, the auditor must go beyond just identifying issues: they perform the actual analysis of suspect claims, determine the appropriate corrections (codes or other adjustments), and lay out the rationale and financial impact of those changes. This creates a transparent audit trail and supports the conclusions reached. This is why other options aren’t correct: preparing the audit budget isn’t the main focus of the audit work itself, reviewing only payroll records narrows the scope too much, and relying solely on data analytics without documentation leaves the results without support or explanation.

When auditing, the key requirement is to substantively analyze suspect items and clearly document what changes are needed and why, including how those changes affect the finances. Even if the plan is a full audit or a sample, the auditor must go beyond just identifying issues: they perform the actual analysis of suspect claims, determine the appropriate corrections (codes or other adjustments), and lay out the rationale and financial impact of those changes. This creates a transparent audit trail and supports the conclusions reached.

This is why other options aren’t correct: preparing the audit budget isn’t the main focus of the audit work itself, reviewing only payroll records narrows the scope too much, and relying solely on data analytics without documentation leaves the results without support or explanation.