Which components are included in an internal audit process for a LCPAA?

• A. Review of licensing standards only
• B. Review of policies, records, finances, and licensing compliance
• C. Review of staff schedules
• D. Review of external vendor contracts

Answer: (B)

The main idea is that an internal audit should look at how the organization governs itself and stays compliant across several foundational areas. For a LCPAA, the internal audit should examine policies, records, finances, and licensing compliance because together these elements show whether operations are guided by documented rules, accurately recorded, financially sound, and aligned with licensing requirements. Reviewing policies confirms the procedures that staff should follow; checking records ensures information is accurate and complete; evaluating finances tests controls, reporting, and the use of funds; and verifying licensing compliance ensures the agency meets regulatory standards. This broad, integrated view helps identify where controls may be weak or where processes aren’t being followed.

Focusing only on licensing standards misses how policies are implemented and enforced, how records are maintained, and how financial controls operate. Looking at staff schedules centers on staffing logistics rather than overall governance and compliance. Reviewing external vendor contracts deals with procurement relationships, which is part of operations but does not address the full spectrum of internal controls and regulatory adherence that an internal audit should cover.