A self-insured employer is not responsible for an audit fee in which case?

• A. Random audit by federal authorities
• B. Out-of-state audit
• C. Routine in-state audit
• D. Special investigative audit

Answer: (C)

In California self-insurance programs, routine in-state audits are considered standard regulatory oversight, so their costs are absorbed by the program and the self-insured employer does not pay an audit fee in that case. Audits that fall outside this routine scope—such as a random audit by federal authorities, an out-of-state audit, or a special investigative audit—often involve extra work, travel, or cross-jurisdictional requirements, and the associated audit fees are typically charged to the employer. The main idea is that only non-routine audits carry a bill to the employer; routine in-state audits do not.