Business associates are required to sign business associate contracts with which of the following?

• A. Shareholders
• B. External auditors
• C. Vendors of office supplies
• D. Covered entities

Answer: (D)

Verified step by step guidance

1. Understand the concept of 'business associate contracts' in the context of financial accounting and compliance. These contracts are typically required under regulations such as HIPAA (Health Insurance Portability and Accountability Act) to ensure the protection of sensitive information.
2. Identify the term 'covered entities.' Covered entities generally refer to organizations such as healthcare providers, health plans, and healthcare clearinghouses that handle protected health information (PHI).
3. Analyze the options provided: Shareholders, External auditors, Vendors of office supplies, and Covered entities. Determine which of these parties would be involved in handling sensitive information requiring a business associate contract.
4. Eliminate options that do not align with the definition of covered entities or the need for a business associate contract. For example, shareholders and vendors of office supplies typically do not handle PHI, and external auditors may have separate agreements for confidentiality but are not classified as covered entities.
5. Conclude that business associate contracts are specifically required with covered entities, as they are directly involved in the handling and protection of sensitive information under applicable regulations.