Which areas should audits consider for effective compliance evaluation?

Effective compliance evaluations focus on identifying and assessing areas that could pose risks to an organization's adherence to regulations and standards. The correct answer emphasizes the importance of areas of concern that have been previously identified by external authorities, such as outside agencies, the Office of Inspector General (OIG) Work Plan, and OIG Fraud Alerts. These resources provide organizations with insights into common compliance issues and potential areas for scrutiny, which helps in prioritizing audit areas that are relevant to compliance.

By focusing on the OIG Work Plan and Fraud Alerts, auditors can align their evaluations with the latest regulatory expectations and findings, ensuring that they are proactive in addressing compliance risks before they escalate into significant issues. This approach not only enhances the overall effectiveness of compliance programs but also demonstrates an organization's commitment to adhering to legal and regulatory requirements.

On the other hand, while internal memos and procedures, competitor compliance strategies, and employee satisfaction surveys can offer useful insights, they do not directly reflect the external regulatory landscape or the latest compliance risks identified by authoritative bodies like the OIG. Thus, they do not hold the same level of relevance for conducting a thorough compliance audit as the areas highlighted in the correct answer.