Final answer:
All the listed options are appropriate situations for using outside service providers in health care benefits auditing, including evaluating liabilities, cost comparison, and training for audits on health care costs.
Step-by-step explanation:
The use of outside service providers with expertise in health care benefits is appropriate when the internal audit activity is evaluating the organization's estimate of its liability for postretirement benefits, which include health care benefits, comparing the cost of the organization's health care program with other programs offered in the industry, and training its staff to conduct an audit of health care costs in a major division of the organization. Therefore, the correct answer to when it's appropriate to use outside service providers for health care benefits audit is D. All of the answers are correct.
In the context of health care financing, it's important to understand different reimbursement structures, such as the fee-for-service health financing system, and health maintenance organizations (HMOs). Understanding these systems aids in analyzing costs and benefits. Adverse selection and moral hazard are additional considerations in evaluating insurance markets and healthcare incentive structures.