CMS Pub. 100-06, ch. 8, § 120.6

The responsible/designated contractor will issue an audit report if it audits a home office

cost statement. While it is appropriate to use the general format of the sample “Form of

Report on Audit of Medicare Cost Report” (see Exhibit VII in §170 of this chapter) for a

home office cost statement, the contractor should modify the language of the audit report

to reflect this type of entity. For example, a home office is not a provider of Medicare

services receiving direct payment from the Medicare program. Therefore, the reference

to payment amounts in the second and fourth paragraphs of the sample audit report is

inappropriate under these circumstances. Similarly, the contractor should change

references to "cost report" and “provider” to "home office cost statement" and “home

office”. Furthermore, the contractor must substitute the following elements in the audit

report for home office in place to similar elements related to the cost report.

• If the report relates to a home office cost statement, a statement that GAS

standards require the contractor to plan and perform the audit to obtain

reasonable assurance about whether the Medicare home office cost

statement is prepared in accordance with Medicare laws, regulations, and

instructions, and

• A statement that the Medicare home office is responsible for compliance

with Medicare laws, regulations, and instructions.