AAPC
CPMA
LATEST READINESS EXAM
Q&S
©2024/2025
,1. Advanced Auditing Theory:
What is the primary purpose of a risk-based audit plan?
A) To randomly select cases for review
B) To focus on areas with the highest risk of non-
compliance
C) To ensure all areas are audited equally
D) To prioritize low-risk areas to save time
Answer: B) To focus on areas with the highest risk of
non-compliance
Rationale: A risk-based audit plan aims to prioritize and
address areas that pose the greatest risk to the
organization, ensuring effective resource allocation.
2. Legal and Regulatory Issues:
Which of the following laws primarily governs patient
privacy and security of health information?
A) Stark Law
B) Anti-Kickback Statute
C) Health Insurance Portability and Accountability Act
(HIPAA)
D) False Claims Act
Answer: C) Health Insurance Portability and
Accountability Act (HIPAA)
Rationale: HIPAA is the comprehensive federal law
responsible for establishing standards for patient privacy
and the security of health information.
3. NCCI (National Correct Coding Initiative):
The purpose of NCCI edits is:
A) To define medical necessity
B) To prevent improper coding
C) To enforce the use of new medical technologies
©2024/2025
, D) To standardize healthcare provider fees
Answer: B) To prevent improper coding
Rationale: NCCI edits are designed to prevent improper
coding that could lead to inappropriate payment for
Medicare Part B claims.
4. RAC (Recovery Audit Contractor) Audits:
Which of the following is NOT a primary focus area for
RAC audits?
A) Overpayments
B) Compliance with patient care quality
C) Underpayments
D) Identifying coding errors
Answer: B) Compliance with patient care quality
Rationale: RAC audits primarily focus on identifying
improper payments due to overpayments, underpayments,
and coding errors, rather than patient care quality
compliance.
5. Statistical Sampling:
What is a primary advantage of using statistical sampling
in audits?
A) It ensures every record is audited
B) It minimizes the amount of data to review while
providing reliable estimates
C) It guarantees errors are identified in every sample
D) It is identical to a 100% review in accuracy
Answer: B) It minimizes the amount of data to review
while providing reliable estimates
Rationale: Statistical sampling allows auditors to draw
conclusions about a population by examining a
representative subset, saving time and resources.
©2024/2025
CPMA
LATEST READINESS EXAM
Q&S
©2024/2025
,1. Advanced Auditing Theory:
What is the primary purpose of a risk-based audit plan?
A) To randomly select cases for review
B) To focus on areas with the highest risk of non-
compliance
C) To ensure all areas are audited equally
D) To prioritize low-risk areas to save time
Answer: B) To focus on areas with the highest risk of
non-compliance
Rationale: A risk-based audit plan aims to prioritize and
address areas that pose the greatest risk to the
organization, ensuring effective resource allocation.
2. Legal and Regulatory Issues:
Which of the following laws primarily governs patient
privacy and security of health information?
A) Stark Law
B) Anti-Kickback Statute
C) Health Insurance Portability and Accountability Act
(HIPAA)
D) False Claims Act
Answer: C) Health Insurance Portability and
Accountability Act (HIPAA)
Rationale: HIPAA is the comprehensive federal law
responsible for establishing standards for patient privacy
and the security of health information.
3. NCCI (National Correct Coding Initiative):
The purpose of NCCI edits is:
A) To define medical necessity
B) To prevent improper coding
C) To enforce the use of new medical technologies
©2024/2025
, D) To standardize healthcare provider fees
Answer: B) To prevent improper coding
Rationale: NCCI edits are designed to prevent improper
coding that could lead to inappropriate payment for
Medicare Part B claims.
4. RAC (Recovery Audit Contractor) Audits:
Which of the following is NOT a primary focus area for
RAC audits?
A) Overpayments
B) Compliance with patient care quality
C) Underpayments
D) Identifying coding errors
Answer: B) Compliance with patient care quality
Rationale: RAC audits primarily focus on identifying
improper payments due to overpayments, underpayments,
and coding errors, rather than patient care quality
compliance.
5. Statistical Sampling:
What is a primary advantage of using statistical sampling
in audits?
A) It ensures every record is audited
B) It minimizes the amount of data to review while
providing reliable estimates
C) It guarantees errors are identified in every sample
D) It is identical to a 100% review in accuracy
Answer: B) It minimizes the amount of data to review
while providing reliable estimates
Rationale: Statistical sampling allows auditors to draw
conclusions about a population by examining a
representative subset, saving time and resources.
©2024/2025
