Insurance and Medical Coding Test Prep

Category - Free Coding Specialist Practice Test

What is the purpose of an internal audit?
  1. It allows an outside agency to see your records to make sure that the patients were billed correctly
  2. It allows the coders and billers in your office to make sure your claims were billed correctly
  3. It allows Medicare to go through your charges to make sure that they are reasonable
  4. It allows patients to make sure they were not overcharged for their office visit co pays
Explanation
Answer: B - The purpose of an internal audit is to allow the coders and billers in your office to make sure your claims were billed correctly. There are two types of internal audits: prospective, which are completed before claims are sent out and retrospective, which are performed after claims are sent and paid. Both internal audits are conducted to make sure your office is coding and billing correctly.
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