Which type of audit requires written permission?

• A. Routine audit
• B. Special audit
• C. Revocation audit
• D. Out-of-state audit

Answer: (C)

When a review is tied to removing a self-insured status, formal written authorization is required. A revocation audit is a serious, legally sensitive action because it could strip an employer of its self-insured protections, so the auditing body must have documented, explicit permission to access records, compel evidence, and proceed with the investigation. This written authorization protects due process, clearly defines the scope, and ensures the audit is legally supported.

Routine audits are standard, ongoing checks authorized by statute or plan rules and typically proceed with notice and established procedures. Special audits are triggered by particular concerns or events but still operate under existing authority, not necessarily needing a separate written permit for every scope. Out-of-state audits involve coordination with another jurisdiction and follow different procedural requirements. The key distinction for revocation audits is that the potential consequence—loss of self-insured status—demands formal written permission.