An Audit of an Organization's Claims Department Determined That a Large

Multiple Choice

An audit of an organization's claims department determined that a large number of duplicate payments had been issued due to problems in the claims processing system. During the exit conference, the vice president of the claims department informed the auditors that attempts to recover the duplicate payments would be initiated immediately and that the claims processing system would be enhanced within six months to correct the problems. Based on this response, the chief audit executive should:

A) Adjust the scope of the next regularly scheduled audit to assess controls within the claims processing system.
B) Discuss the findings with the audit committee and ask the committee to determine the appropriate follow-up action.
C) Schedule a follow-up engagement within six months to assess the status of corrective action.
D) Monitor the status of corrective action and schedule a follow-up engagement when appropriate.