The claims department of National Insurance Company has instituted some new claims procedures for local offices. The new procedures have been designed to improve the review of claims and to prevent both overpayment and payment of false claims. Management mentioned concern about the new procedures at the opening conference of an audit.

Management told the auditors that three complaints had been received recently about the excessive time it took to receive the insurance proceeds for their claims. The company advertises 48-hour claims service. Each of the three claims that generated complaints took seven days. Management said these were the first complaints of this type and were received only after the new procedures were implemented. Management feared that if claims took too long to process, many clients would switch to another company. The auditors decided to find out if processing time really had increased, and if so, whether it was because of the new procedures. The auditors decided to test 25 randomly selected claims made since the change in procedures and 25 claims from before the changes and compare them statistically. If the claims since the change were taking significantly longer, the auditors decided to walk through both processes — before the change and after the change — and stay alert for differences in time requirements. If there were no significant differences in the two samples, the auditors decided to find out why the particular claims responsible for the complaints had been delayed.

Required:

Prepare a schedule showing the development of the expanded audit procedures from the result of the opening conference.