Why might hiring a full-time internal auditor be cost prohibitive?

Hiring a full-time internal auditor can indeed be cost prohibitive, especially for solo practitioners or small group practices. These entities often operate on tighter budgets and may not have sufficient funds to cover the salary and associated costs of an internal auditor. While having an internal auditor can provide valuable oversight and ensure compliance with regulations, the financial constraints of smaller practices often make it impractical to hire someone full-time for this role.

In larger organizations, the cost of an internal auditor can be spread over a broader range of services and departments, making it a more manageable expense. However, in smaller practices, the cost could represent a significant portion of the overall operations budget, which might lead to financial strain or the need to reallocate funds from other essential areas of the practice, such as patient care or staffing. Thus, the economic reality for these smaller practices often makes the hiring of a full-time internal auditor not feasible.