Who selects the IRO?

Who selects the IRO?

• A. The OIG
• B. The compliance officer
• C. The auditee's legal counsel
• D. The board

Answer: (C)

The main idea here is who should appoint an Independent Review Organization in a compliance scenario. An IRO is brought in to provide an objective, external assessment, and its independence is essential for credibility and for protecting sensitive information or legal privilege. The auditee’s legal counsel is the right party to select the IRO because they handle the legal strategy, define the scope of the review, and ensure the arrangement preserves privilege and confidentiality. This placement helps guarantee the reviewer is truly independent and qualified, without being influenced by enforcement bodies or internal staff. Why not the others? The OIG, as the enforcement agency, oversees compliance and investigations but does not contract an IRO on behalf of the auditee. Having a compliance officer pick the IRO could risk conflicts of interest or bias toward internal perspectives. The board oversees governance, but the actual selection and management of external reviews are typically driven by legal counsel to support privilege, strategy, and proper scope.

The main idea here is who should appoint an Independent Review Organization in a compliance scenario. An IRO is brought in to provide an objective, external assessment, and its independence is essential for credibility and for protecting sensitive information or legal privilege. The auditee’s legal counsel is the right party to select the IRO because they handle the legal strategy, define the scope of the review, and ensure the arrangement preserves privilege and confidentiality. This placement helps guarantee the reviewer is truly independent and qualified, without being influenced by enforcement bodies or internal staff.

Why not the others? The OIG, as the enforcement agency, oversees compliance and investigations but does not contract an IRO on behalf of the auditee. Having a compliance officer pick the IRO could risk conflicts of interest or bias toward internal perspectives. The board oversees governance, but the actual selection and management of external reviews are typically driven by legal counsel to support privilege, strategy, and proper scope.