Case Study Of CVS Health Corporation

Moreover, the auditor should preform test for effectiveness of internal controls. He may interview management by asking questions on the process of the transactions and operational activities. He may discuss with management the process of some transactions from beginning to end and then test it by using sample testing. Also he/she should make sure that there is proper control of activities; policies and procedures for adequate segregation of duties are met.

To conduct the audit, the firm must acquire sufficient understanding of the internal control processes to help determine the nature and timing of the audit. However, the audit is not designed to identify deficiencies in internal control or provide assurance. The firm will make the audit committee aware of any significant deficiencies that come to Anderson, Olds, and Watershed’s attention during the audit.

It is common industry knowledge that an audit plan provides the specific guidelines auditors must follow when conducting an external audit. External public accounting firms conduct external audits to ensure outside stakeholders that the company’s financial statements are prepared in accordance with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS) standards.

In preparing for the audit all aspects of a company need to be reviewed. For the preparation of the audit several things must be considered as define in the following pages.

Although arch rivals Walgreen Co. in terms of overall revenues is the leader, rival competitors in the industry, CVS Corporation in particular, is the largest drugstore chain in the United States in terms of stores and number of prescriptions filled. CVS operates more than 4,100 stores in 27 states throughout the nation. Nearly 10 percent of all prescriptions filled in the United States are handed by CVS pharmacies. While CVS Corporation market capital in sales top at 22.3 billion dollars at the end of the last quarter, it was no comparison to the pharmacy industry leader, Walgreen’s, who topped at 43.4 billion in sales.

CVS Health generate revenue mainly from Pharmacy Services Segment and Retail Pharmacy segment. Pharmacy services segment revenue includes: the portion of the price the client pays directly to the PSS, price paid by client plan members for mail order prescriptions or for retail prescriptions and administrative fees for retail pharmacy network contracts. Under PSS revenues generated from the sale of prescription drugs are recognized when the prescription is delivered, and when the prescription drugs are sold by third party pharmacies at the point-of-sale. In Retail Pharmacy Segment revenues are recognize at the time the customer takes possession of the merchandise and at the time the services are performed at RPS’ health care clinics.

CVS Health happens to be one of the largest pharmacies serving people in every community. In fact, there is a CVS across the street from just about every hospital, on every major interception, and are within a 2-mile radius of one another. This is the way it has been since the company was founded “in Lowell, Massachusetts by brothers Stanley and Sidney Goldstein and partner Ralph Hoagland” in 1963, and it’s the way the company plans to keep expanding the company in a proximity to one another. They have even gone as far as expanding the size of the store to fit the community. All in an effort, to be responsive and committed enough to meet the needs of not only the customers, but the clients and the community as well (CVS Health, 1999-2016). Especially, since the company admits that over the past fifty years, they have changed to better service people in their health.

CVS added an impressive $11.5 billion worth of net new business to the division during the year. Better yet, not only has CVS Health has done a great job of winning its fair share of new business, but it is equally adept at holding on to the customers that are already in its network. In 2015, the company retained 98% of its pharmacy benefit management clients, which shows just how much value businesses get from partnering with CVS Health to reduce their pharmacy costs. In total, the company estimates that it saved its customers more than $6.4 billion in incremental costs from 2012 through 2016 through its formulary management strategies. Management believes this segment should also show double-digit growth in

The complexity and diversity that lies within CVS is rather amazinf in nature. One may believe from just the name that CVS is a pharmacy. On the unseen portion though, CVS plays key roles within the healthcare industry. Yes, they do in fact provide prescription drugs to consumers, CVS is also a key player in the tracking of multiple health related conditions. CVS role is not limited to but does in fact include the data collection of, “Biometric monitoring, tobacco cessation, and weight loss programs. CVS made an excellent point that “We undertake chronic care only when working with primary care doctors to complement the services they offer” ("2014 Annual Report", p. 21). This shows that CVS plans on having a stake in the long term care of patients/consumers. As a pharmaceuticals supply business, CVS stands to make a considerably large revenue, yet they show that CVS does care about the consumers’ wellness. Lets not additionally forget, CVS has employed minute clinics within so many communities, that do in fact, focus on multiple acute problems not limited to but including sore throats, ear infections and aforementioned acute health issues. With the Affordable Care Act, CVS has experienced tremendous growth within communities.

You may be wondering why a former Manager in Training from CVS Health is applying for this position. If so, please take a moment to see how my experience and skills meet your requirements:

CVS health hasn’t always been that name at one point they went by CVS Caremark and still some of the things they have out there are named CVS Caremark. The main corporation is based out of Woonsocket Rhode Island. There are roughly 8,500 CVS Health pharmacies and clinics around the world with more to be built eventually. CVS Health is ranked number ten on the fortune 500 and has went up in ranking yearly. CVS stands for convenience, value, service.

The Fortune 500 company I chose is CVS Health. I chose this for a few different reasons. First, I recently had to visit the Minute Clinic in the CVS store twice within the last month. Secondly, I chose CVS because it is part of the health care initiative and I work for a healthcare company.

The auditor’s responsibilities are to audit annual financial statements and internal controls over financial reporting, and reports from the 10-Q quarterly reports. The auditor must also advice on new accounting pronouncements, and consolidating financial statements. (Intel Proxy Statement 2011, 48)

CVS Health Corporation is an integrated pharmacy healthcare and head quartered in Woonsocket, RI. The President and CEO of CVS is Larry J. Merlo. The company has three segments, Pharmacy services, Retail pharmacy and Corporate. CVS was previously known as Caremark Corporation and the name was changed to CVS on September 3rd 2014.

The auditor must obtain an understanding of the entity and its environment, including internal controls, so that they can identify and assess the risks of material misstatement on financial statements due to fraud or error and design and perform further audit procedures.