Preview Questions Internal Auditor | Role Specific Skill

Question 1: In internal control systems, what does the concept of "independence" primarily refer to?

Which action should you take?

Choose only one option

The autonomy of each department within the organization

The ability of employees to work without supervision

The objectivity of the audit function and lack of bias

The freedom to implement controls without management approval

Question 2: Which of the following statements best defines the scope of IFRS 9?

Which action should you take?

Choose only one option

It addresses the accounting for financial instruments

It defines lease recognition principles

It applies to insurance contracts only

It defines the principles for financial reporting on income

Question 3: During a compliance audit of customer protection laws in the BFSI industry, which is the most significant focus?

Which action should you take?

Choose only one option

Evaluating the investment strategies in customer accounts

Reviewing the company's loan portfolio performance

Analyzing the profit margins for customer-facing services

Ensuring that customers' funds are adequately protected in line with regulatory requirements

Question 4: What is the primary goal of an internal audit's risk-based approach in assessing internal controls?

Which action should you take?

Choose only one option

To limit audit resources to specific departments only

To audit every control equally without prioritization

To focus on the most significant risks and prioritize testing of controls based on their potential impact

To primarily evaluate operational costs

Question 5: What is "risk appetite," and why is it important in risk management?

Which action should you take?

Choose only one option

It measures the capacity of the organization to withstand financial losses

It dictates the type of risks an organization should avoid

It sets the limits on the risks that can be avoided

It defines the level of risk an organization is willing to accept while pursuing its objectives

Question 6: Which of the following is NOT typically a component of an enterprise risk management (ERM) system?

Which action should you take?

Choose only one option

Risk monitoring

Risk documentation

Risk avoidance

Risk assessment