What characterizes an external audit in a medical practice?

An external audit in a medical practice is characterized by being conducted by an individual or group that is not part of the organization. This means that the auditors are independent and can provide an objective assessment of the practice’s operations, compliance, and financial practices. The impartiality of external auditors helps ensure that the audit results are credible and trustworthy, which is important in helping organizations identify areas for improvement and ensuring adherence to relevant laws and regulations.

In contrast, the other options focus on aspects that do not align with the definition or scope of an external audit. Internal staff conducting an audit would suggest an internal audit rather than an external one, which lacks the same level of impartiality. Restricting the review to only financial records does not accurately describe an external audit since such audits often encompass a broader review, including compliance with healthcare regulations, billing practices, patient care protocols, and more. Lastly, stating that external audits are only for large healthcare organizations is misleading as all sizes of medical practices, from small clinics to large hospitals, can undergo external audits to enhance operational transparency and performance.