Which entity is associated with three types of audits?

• A. Administrative Director
• B. Director of Industrial Relations
• C. Department of Insurance
• D. Local District Attorney

Answer: (B)

The idea being tested is which state entity oversees the audits related to California self‑insured plans. The Director of Industrial Relations is responsible for the workers’ compensation self‑insurance program, and part of that oversight involves three main audit types: financial solvency audits to ensure adequate funding and reserves, regulatory/compliance audits to verify adherence to laws and rules, and safety or loss‑control program audits to confirm effective loss prevention measures. Because these critical SIP audits fall under the Industrial Relations leadership, this entity is the best match. The Administrative Director is a broader administrative role not specifically tied to SIP audits; the Department of Insurance regulates private insurers rather than self‑insured plans; and a Local District Attorney focuses on criminal prosecutions, not regulatory audits of self‑insurance programs.