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CPMA Exam Chapter 5- Corrective action Plans questions with answers, Exams of Auditing

CPMA Exam Chapter 5- Corrective action Plans questions with answers

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2024/2025

Available from 07/05/2025

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CPMA |! Exam |! Chapter |! 5: |! Corrective |!
action |! Plans |! questions |! with |!
answers
Except |! in |! the |! case |! of |! routine |! or |! annual |! compliance |! audits |! conducted |! on |!
behalf |! of |! providers |! that |! do |! not |! have |! formal |! compliance |! programs |! or |! staff, |! - |!
Correct |! answer |! it |! is |! not |! usually |! the |! auditor's |! responsibility |! to |! develop |! a |!
corrective |! action |! plan.
In |! the |! case |! of |! audits |! associated |! with |! voluntary |! repayments |! or |! disclosures |!
under |! the |! SDP |! (Self |! Disclosure |! Protocol) |! for |! potentially |! fraudulent |!
conduct, |! - |! Correct |! answer |! it |! usually |! falls |! to |! the |! entity's |! legal |! counsel |! to |!
make |! corrective |! action |! recommendations |! or |! to |! develop |! a |! corrective |! action |!
plan.
Regardless |! of |! the |! circumstances, |! an |! auditor |! may |! be |! tasked |! with |! making |! - |!
Correct |! answer |! corrective |! action |! recommendations |! as |! a |! critical |! part |! of |!
the |! effort |! in |! developing |! a |! formal |! corrective |! action |! plan.
To |! this |! end, |! it |! is |! important |! for |! an |! auditor |! to |! understand |! the |! basic |!
components |! found |! in |! most |! corrective |! action |! plans
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CPMA |! Exam |! Chapter |! 5: |! Corrective |!

action |! Plans |! questions |! with |!

answers

Except |! in |! the |! case |! of |! routine |! or |! annual |! compliance |! audits |! conducted |! on |! behalf |! of |! providers |! that |! do |! not |! have |! formal |! compliance |! programs |! or |! staff, |! - |! Correct |! answer |! ✔it |! is |! not |! usually |! the |! auditor's |! responsibility |! to |! develop |! a |! corrective |! action |! plan. In |! the |! case |! of |! audits |! associated |! with |! voluntary |! repayments |! or |! disclosures |! under |! the |! SDP |! (Self |! Disclosure |! Protocol) |! for |! potentially |! fraudulent |! conduct, |! - |! Correct |! answer |! ✔it |! usually |! falls |! to |! the |! entity's |! legal |! counsel |! to |! make |! corrective |! action |! recommendations |! or |! to |! develop |! a |! corrective |! action |! plan. Regardless |! of |! the |! circumstances, |! an |! auditor |! may |! be |! tasked |! with |! making |! - |! Correct |! answer |! ✔corrective |! action |! recommendations |! as |! a |! critical |! part |! of |! the |! effort |! in |! developing |! a |! formal |! corrective |! action |! plan. To |! this |! end, |! it |! is |! important |! for |! an |! auditor |! to |! understand |! the |! basic |! components |! found |! in |! most |! corrective |! action |! plans

Corrective |! Action |! Plans |! have |! the |! following |! components |! - |! Correct |! answer |! ✔Review Education Development/Modification |! of |! Policies Follow-up |! audits Overpayment |! Disclosure Corrective |! Action |! Plan: |! Review |! - |! Correct |! answer |! ✔Review |! of |! the |! audit |! results |! with |! the |! auditee |! and |! legal |! counsel |! is |! necessary |! to |! ensure |! everyone |! understands |! the |! basis |! for |! the |! conclusions |! expressed |! in |! the |! audit |! report This |! review |! is |! often |! performed |! prior |! to |! the |! issuance |! of |! a |! formal |! and |! final |! report. Corrective |! Action |! Plan: |! Review |! is |! often |! effective |! to |! - |! Correct |! answer |! ✔identify |! any |! ambiguous |! or |! confusing |! portions |! of |! the |! report. An |! auditor |! must |! be |! a |! skilled |! writer |! to |! effectively |! convey |! the |! reasons |! behind |! any |! error.

Corrective |! Action |! Plan: |! Development/Modification |! of |! Policies |! - |! Correct |! answer |! ✔Sometimes |! the |! policy |! is |! appropriate, |! but |! the |! tools |! to |! implement |! the |! policy |! (for |! example, |! practice |! forms) |! are |! deficient. |! development |! or |! modification |! of |! existing |! policies, |! practice |! forms, |! etc., |! will |! always |! involve |! the |! re-training |! of |! existing |! staff, |! as |! well |! as |! training |! of |! all |! subsequent |! hired |! new |! staff. Corrective |! Action |! Plan: |! Follow-up |! Audits |! - |! Correct |! answer |! ✔In |! many |! cases, |! the |! audit |! identifies |! a |! specific |! error |! or |! cause |! of |! error, |! after |! which |! it |! is |! common |! to |! look |! at |! this |! issue |! more |! closely |! in |! subsequent |! audits. |! (It |! would |! be |! appropriate |! to |! audit |! that |! provider/code |! combination |! going |! forward |! to |! ensure |! that |! the |! educational |! efforts |! were |! effective. Corrective |! Action |! Plan: |! Follow-up |! Audits |! (Internal |! audits) |! - |! Correct |! answer |! ✔Where |! errors |! are |! identified |! in |! an |! annual |! audit, |! they |! should |! be |! added |! to |! the |! list |! of |! issues |! evaluated |! in |! subsequent |! internal |! audits. Corrective |! Action |! Plan: |! Follow-up |! Audits |! (OIG |! identified |! issues) |! - |! Correct |! answer |! ✔Where |! the |! OIG |! identifies |! an |! issue |! and |! imposes |! a |! CIA |! (Corporate |! Integrity |! Agreement), |! those |! issues |! will |! be |! the |! specific |! focus |! of |! the |! IOR |! in |! the |! annual |! audit |! required |! by |! the |! OIG, |! as |! part |! of |! the |! CIA Corrective |! Action |! Plan: |! Overpayment |! Disclosure |! - |! Correct |! answer |! ✔Unless |! you |! are |! a |! licensed |! attorney |! representing |! the |! auditee, |! it |! is |! beyond |! an |! auditor's |! scope |! and |! training |! to |! identify |! an |! entity's |! legal |! duty |! to |! disclose |! an |! overpayment |! and |! refund.

As |! a |! general |! rule, |! all |! overpayments |! should |! be |! disclosed |! and |! refunded, |! but |! the |! moral |! duty |! to |! do |! so |! cannot |! be |! confused |! with |! the |! legal |! duty |! to |! do |! so. Corrective |! Action |! Plan: |! Overpayment |! Disclosure |! - |! Correct |! answer |! ✔Where |! an |! audit |! results |! in |! error |! that |! causes |! an |! apparent |! overpayment, |! the |! auditor |! should |! simply |! make |! a |! are |! commendation |! that |! the |! practice |! engage |! legal |! counsel |! for |! analysis |! of |! the |! entity's |! legal |! duty |! to |! disclose |! and |! refund |! any |! identified |! overpayment, |! or |! to |! perform |! additional |! auditing |! necessary |! to |! identify |! the |! totality |! of |! the |! potential |! overpayment. Corrective |! Action |! Plan: |! Overpayment |! Disclosure |! - |! Correct |! answer |! ✔Where |! the |! MD |! has |! already |! retained |! legal |! counsel, |! the |! auditor |! has |! usually |! been |! engaged |! by |! the |! counsel |! and |! must |! therefore |! simply |! report |! any |! concerns |! to |! the |! entity's |! appointed |! counsel. Either |! way |! (recommending |! the |! MD |! get |! legal |! counsel; |! or |! reporting |! concerns |! to |! the |! MDs |! appointed |! counsel) |! the |! auditor |! can |! avoid |! liability |! associated |! with |! making |! the |! wrong |! call. How |! to |! avoid |! liability |! associated |! with |! the |! audit? |! - |! Correct |! answer |! ✔If |! overpayments |! are |! identified: 1)Recommend |! SDP |! (Self |! Disclosure |! Protocol) |! and |! repayment