Claims created in Madison Hospital for services performed this month are sent to an auditor before being forwarded to the third party payer. This is a(n) _____ audit.

The scenario describes an audit process where claims for services performed within the same month are reviewed before they are submitted to a third party payer. This type of audit is classified as a concurrent audit, as it occurs simultaneously with the provision of services.

In a concurrent audit, the review takes place in real-time, allowing for immediate feedback and adjustments to be made before the claims are finalized and sent to the payer. This is beneficial for ensuring that the claims are accurate, complete, and compliant with regulations before they are submitted, thus reducing the risk of errors and denials later in the process.

In contrast, retrospective audits occur after the services have been provided and claims have been submitted, making it more challenging to implement immediate corrections. Sampling audits involve checking a subset of claims rather than a comprehensive review of all claims. External audits are typically conducted by independent parties outside of the organization, while in this case, it appears that the auditing process is internal prior to submission, indicating an internal concurrent approach.

Therefore, the key aspect that defines the concurrent audit in this context is the timing of the audit relative to the services rendered and claims submitted, hence reinforcing why this is the correct categorization.