Which of the following situations is most likely to require a compliance engagement from the internal audit activity?

• A. An organization must restate its financial statements due to an error in fixed asset valuation.
• B. An organization is subject to newly imposed industry health and safety regulations.
• C. An organization is preparing to launch an enhanced service for its online customer information system.

An internal auditor discovers that a vendor had submitted invoices and was paid for services not rendered. Which of the following controls is most appropriate to address this type of issue?

• A. The accounts payable clerk should compare the acknowledgment of goods and services to the invoice.
• B. The supervisor should verify that the amount paid agrees with the contracted amount.
• C. The supervisor should observe the input of invoices into the payment system.

During which stage of an audit engagement would the engagement supervisor identify the tasks that were already completed and the remaining tasks to be performed?

• A. When developing the test approach.
• B. When documenting the work program.
• C. When allocating resources.

Which sampling technique uses a nonrandom selection process that is expected to be representative of the population as a whole?

• A. Judgmental sampling.
• B. Haphazard sampling.
• C. Attribute sampling.

During an accounts payable audit engagement, the internal auditor identified a risk that vendor invoices may be paid multiple times. Which of the following would be appropriate preventive controls to mitigate this risk?

• A. Manual controls requiring the reconciliation of paid vendor invoices to monthly invoice statements provided by the vendor.
• B. System controls to identify identical invoice numbers and dates from the same vendor prior to payment.
• C. System controls to identify identical invoice amounts from the same vendor that prohibit payment after the initial invoice.