The internal audit function is a critical part of an organization's control and governance structure. This case introduces students to the complete internal audit process for a company, including identification of risk, audit planning, execution of fieldwork, and reporting. In this exercise students are asked to assume the role of an internal auditor for a community hospital and perform risk assessment, perform testing, and documentation based on an audit program, and prepare an audit report, detailing findings and recommendations. The case includes both testing for compliance with laws and regulations, and tests of compliance with internal control policies and procedures. In response to an ever-changing business environment and the expectations of stakeholders, the internal audit profession identifies compliance with laws and regulations as one of the top risks frequently cited by both audit committee and executive management. The hospital setting is one of particular interest for addressing this topic. This case is appropriate for undergraduate and graduate students in internal auditing and external auditing classes.