The commission or its staff has the ability to initiate a(n) __________ into actions of a licensee or any person acting in that capacity.

The appropriate term to fill in the blank is "investigation" because it encompasses a formal inquiry into the actions or conduct of a licensee or any individual functioning in that role. Investigations are typically comprehensive and can include collecting evidence, interviewing witnesses, and examining documentation to assess compliance with regulations and laws governing professional conduct. In the context of regulating licensed professionals, an investigation is a necessary process for ensuring accountability and safeguarding public trust.

The other choices, while related, do not capture the same breadth of scope as "investigation." A review may refer to examining records or practices but lacks the active, thorough approach associated with gathering evidence and finding resolutions. An audit implies a meticulous assessment of financial records or compliance but is more specific to financial and operational evaluations. Inspection generally indicates a physical examination of conditions or practices rather than a deeper inquiry into behaviors or decisions, which is crucial when dealing with potential misconduct or violations. Therefore, "investigation" is the most fitting term in this context.