Sec. 442.5. Objective evidence

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(a) Information produced by the accounting process should be based, to the extent possible, upon objectively determined facts. Transactions should be supported by properly executed documents such as charge slips, purchase orders, suppliers' invoices, cancelled checks, etc. Such documents serve as objective evidence of transactions and should be retained as a source of verification of the data in the accounting records.

(b) Certain determinations that enter into the accounting records are based on estimates. The estimates should be based on past experience modified by expected future considerations. Examples would include recognition of estimated provisions for depreciation and bad debts.

(c) Books, papers, records or other data relevant to matters of hospital ownership, organization and operation must be maintained. The data must be maintained in an ongoing recordkeeping system which allows for the data to be readily verified by qualified auditors.