Affordable Care Act holds opportunities, challenges for internal auditors

by | Nov 13, 2018 | Best Business Helps | 0 comments

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Affordable Care Act holds opportunities, challenges for internal auditors

Health care regulations associated with the Patient Protection and
Affordable Care Act (PPACA), P.L. 111-148, have created new
opportunities for internal auditors.

But internal auditors may need to get more familiar with PPACA’s
provisions to help their organizations understand the risks associated
with the law and their organization’s preparedness to mitigate those
risks, according to a new report.

More than four in 10 (41%) of 428 North American internal audit
managers said risks associated with PPACA will be moderately or
extremely impactful on their organization, according to the fall
“Pulse of the Profession” survey by the Institute of Internal Auditors (IIA).

An additional 37% said PPACA-associated risks will be somewhat
impactful to their organizations. But among respondents who said PPACA
would apply to their organization, 38% rated themselves as not very
knowledgeable of PPACA, and another 43% said they are just somewhat knowledgeable.

“One of the greatest opportunities facing the profession this coming
year relates to the U.S. Affordable Care Act,” IIA President and CEO
Richard Chambers said in a news release. “To take advantage of this
opportunity, internal audit cannot assume a reactive posture. This
regulation challenges internal audit to become a visionary, proactive
function in their organization.”

Being aware of the effects of regulatory activity allows internal
auditors to show foresight on compliance risk issues, Chambers said.

The survey also showed that the newly refreshed internal control
framework of the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) is popular with organizations. A substantial
majority (87%) plan to use the 2013 COSO framework for their control
processes, while 73% used the original, 1992 version of the framework.

In addition, the survey showed that:


“Now is the time to get up to speed as the real risks manifest
themselves,” Chambers said.


Ken Tysiac (

ktysiac@aicpa.org
) is a JofA senior editor.

Research & References of Affordable Care Act holds opportunities, challenges for internal auditors|A&C Accounting And Tax Services
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