In Order for an Auditor to Gain an Understanding of an Entity

question 43

Essay

In order for an auditor to gain an understanding of an entity and its environment it should consider the entity's industry conditions, regulatory environment and any economy wide factors. Give two examples of what an auditor may consider in each.

Understand the debate over the allocation of health care resources.

Examine the ethical and practical considerations in the provision of health care.

Understand the factors contributing to rising health care costs in the United States compared to other countries like Canada and the United Kingdom.

Comprehend the role of insurance in the healthcare system, including its effects on healthcare costs and consumption.

---

Definitions:

Memory Loss

The inability to remember information and experiences that would normally be able to be recalled, which can be temporary or permanent and due to various reasons including diseases, brain injury, or psychological trauma.

La Belle Indifference

An apparent lack of concern or distress about one’s significant physical or psychological problems, often seen in conversion disorder.

Physical Symptoms

Physical expressions or manifestations of a medical condition, illness, or injury.

Symptom Substitution

Symptom substitution is the theory suggesting that if the underlying cause of a symptom is not addressed, new symptoms will emerge to replace the original ones.