Medical Auditing Practice Exam

What agreement must an outside auditor sign before reviewing medical records under HIPAA guidelines?

1. Business Associate Agreement

2. Privacy Notice Agreement

3. Consent for Treatment Agreement

4. Confidentiality Agreement

The correct answer is: Business Associate Agreement

The Business Associate Agreement is essential in this context because it specifically outlines the responsibilities and obligations of the outside auditor regarding the protection of patient information as mandated by HIPAA guidelines. This agreement establishes that the external auditor, as a business associate, will safeguard the confidentiality, integrity, and availability of protected health information (PHI) that they may access during their review of medical records. Under HIPAA, any entity that handles PHI on behalf of a healthcare provider must enter into a Business Associate Agreement to ensure compliance with HIPAA rules. The agreement clarifies the permissible uses and disclosures of PHI, mandates the implementation of appropriate safeguards to protect the information, and defines the actions that must be taken in the event of a breach. The other options do not specifically serve the same legal purpose as the Business Associate Agreement. The Privacy Notice Agreement relates more to informing patients about their rights and how their information may be used or disclosed, rather than outlining an auditor's obligations. The Consent for Treatment Agreement is focused on obtaining patient permission for medical procedures, while the Confidentiality Agreement, while important, does not encompass the specific requirements of handling PHI outlined in HIPAA regulations like the Business Associate Agreement does.