What is the primary purpose of establishing and maintaining disclosure controls and procedures?

The primary purpose of establishing and maintaining disclosure controls and procedures is to enhance the accuracy of financial data. This is crucial for any organization, especially in the healthcare sector, where financial reporting impacts not only the organization but also stakeholders, regulatory bodies, and the public.

Effective disclosure controls and procedures help to ensure that all relevant financial information is captured, processed, and reported accurately and timely. They mitigate the risk of errors or omissions that could lead to misrepresentation of financial performance or condition. By implementing these controls, an organization can provide stakeholders with reliable information, thereby fostering trust and confidence.

While compliance with federal regulations, operational efficiency, and employee accountability are important aspects of organizational governance, they serve more as secondary benefits resulting from robust disclosure controls. The focus primarily lies in securing the integrity of the financial information presented to stakeholders.