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

Comprehensive and Detailed Step-by-Step Explanation:

Reference to IIA Standards:

Standard 2130 - Governance: Internal audit must assess compliance with applicable laws,

regulations, and industry standards.

Compliance Auditing: These engagements assess whether the organization adheres to specific rules

and regulations.

Reasoning:

Option C involves newly imposed health and safety regulations, making compliance auditing critical

to ensure the organization avoids penalties or operational disruptions.

Option A pertains to financial reporting, typically addressed in assurance or financial audits.

Option B involves a new service launch, which may require consulting or operational audits but not

necessarily compliance-focused.