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A certified internal auditor is the chief audit executive for a large city and is planning the
engagement work schedule for the next year. The city has a number of different funds, some that are
restricted in use by government grants and some that require compliance reports to the government. One of
the programs for which the city has received a grant is job retraining and placement. The grant specifies
certain conditions a participant in the program must meet to be eligible for the funding

The internal auditors randomly select participants in the job retraining program for the past
year to verify that they had met all the eligibility requirements. This type of engagement is
concerned with