Medical practices may face external audits by both governmental entities and private health insurance providers. The audits are undertaken on behalf of those who pay claims to review billing practices and ensure the integrity of the process. Government audits can include Medicare, Medicaid, and recovery audits. The results of the audit can have significant implications for a medical practice. Therefore, it is essential you take the audit seriously and apply certain defensive strategies. Preparing ahead of time is essential because you may not get advance notice that an audit is happening.