CMS Pub. 100-06, ch. 8, § 80.3

The third general standard for government auditing is:

"Due professional care should be used in conducting the audit and preparing related

reports."

This standard places responsibility on the contractor and on its auditors to follow all

applicable standards in conducting Medicare audits.

Exercising due professional care means using sound professional judgment in

establishing the scope, selecting the methodology, and choosing tests and procedures for

the audit. Follow the same judgment in conducting the tests and procedures and in

evaluating and reporting on the audit results.

A – Materiality and Significance

In planning the audit, selecting the methodology, and designing audit tests and

procedures, consider materiality and significance. Communicate to your audit staff your

quantifiable parameters for materiality and significance.

B – Relying on the Work of Others

(See §60.4 of this chapter for discussion on reliance on the work of other auditors.)

C – Audit Follow-Up

Due professional care also includes follow-up on findings and recommendations from

previous audits that could have an impact on the current audit objectives. Determine

whether prompt and appropriate actions have been taken on findings and

recommendations by provider officials or other appropriate organizations. Pay special

attention to how the provider implemented recommendations you may have given in a

prior year regarding nonallowable costs or items. (See §140ff of this chapter.)

D – Audit Scope Impairments

For all audits, auditors should consider whether audit scope impairments adversely affect

their ability to conduct the audit in accordance with standards outlined within this

chapter. Audit scope impairments are factors external to the audit organization that can

restrict the auditor's ability to render objective opinions and conclusions.