chapter 8
International Research Journal of Applied Finance ISSN 2229 – 6891
January, 2012
Case Study Series
Mercy Hospital: A Case Analysis
Mark McCartney
Saginaw Valley State University
319 Curtiss Hall, 7400 Bay Road
University Center, Michigan 48710, USA mwmccar@svsu.edu Ronald Marden
Appalachian State University
Page
1
Lawrence Kickham
Saginaw Valley State University
Prof. Mark McCartney, Saginaw Valley State University, mwmccar@svsu.edu
Case ID. 030101
International Research Journal of Applied Finance ISSN 2229 – 6891
January, 2012
Case Study Series
Abstract
This is a case study which describes an account (names, other facts changed to preserve anonymity) in which an internal auditor in a hospital setting, due to personal biases and a lack of objectivity, performed a substandard audit of a capital asset acquisition and violated several standards of the International Standards for the Professional Practice of Internal
Auditing as well as the Institute of Internal Auditors (IIA) Code of Ethics. Students use the
Standards and Code of Ethics to form conclusions regarding shortcomings of this audit. The
International IIA Standards and Code of Ethics are online and easily read, with the Standards being twenty one pages in length and the Code of Ethics being two pages. The case is designed to be taught in one class period. Students are exposed to actual standards and required to employ the standards in their analysis of the case.
Case Description
This is a case study involving internal auditing in a hospital setting. It describes an account
(names, other facts changed to preserve anonymity) in which an internal auditor, due to personal biases and a lack of objectivity, performed a substandard audit of a capital asset acquisition and violated several standards of the International Standards for the Professional
Practice of Internal Auditing as well as the Institute of Internal Auditors (IIA) Code of Ethics.
Students
January, 2012
Case Study Series
Mercy Hospital: A Case Analysis
Mark McCartney
Saginaw Valley State University
319 Curtiss Hall, 7400 Bay Road
University Center, Michigan 48710, USA mwmccar@svsu.edu Ronald Marden
Appalachian State University
Page
1
Lawrence Kickham
Saginaw Valley State University
Prof. Mark McCartney, Saginaw Valley State University, mwmccar@svsu.edu
Case ID. 030101
International Research Journal of Applied Finance ISSN 2229 – 6891
January, 2012
Case Study Series
Abstract
This is a case study which describes an account (names, other facts changed to preserve anonymity) in which an internal auditor in a hospital setting, due to personal biases and a lack of objectivity, performed a substandard audit of a capital asset acquisition and violated several standards of the International Standards for the Professional Practice of Internal
Auditing as well as the Institute of Internal Auditors (IIA) Code of Ethics. Students use the
Standards and Code of Ethics to form conclusions regarding shortcomings of this audit. The
International IIA Standards and Code of Ethics are online and easily read, with the Standards being twenty one pages in length and the Code of Ethics being two pages. The case is designed to be taught in one class period. Students are exposed to actual standards and required to employ the standards in their analysis of the case.
Case Description
This is a case study involving internal auditing in a hospital setting. It describes an account
(names, other facts changed to preserve anonymity) in which an internal auditor, due to personal biases and a lack of objectivity, performed a substandard audit of a capital asset acquisition and violated several standards of the International Standards for the Professional
Practice of Internal Auditing as well as the Institute of Internal Auditors (IIA) Code of Ethics.
Students
References: The Institute of Internal Auditors. (2010). International Standards for the Professional Practice of Internal Auditing The Institute of Internal Auditors. (2009). Code of Ethics. Retrieved from http://www.theiia.org/guidance/standards-and-guidance Sawyer, Lawrence B. (2005). Sawyer’s Internal Auditing. Altamonte Springs, FL: The Institute of Internal Auditors United States National Center for Health Statistics. (2010, September). Emergency Department Visits for Chest Pain and Abdominal Pain: United States, 1999-2008 Case ID. 030101