Preview Questions Internal Auditor | Role Specific Skill

Question 1: Which of the following is an example of an automated control in a financial reporting system?

Which action should you take?

Choose only one option

Supervisory review of financial transactions by a senior manager

A system that automatically flags transactions exceeding predefined limits

Physical review of payroll records

Manual reconciliation of account statements

Question 2: Under IAS 1, when is it required for an entity to prepare consolidated financial statements?

Which action should you take?

Choose only one option

When it holds more than 10% of voting shares

When it has control over another entity

When it owns more than 25% of another entity

When it holds controlling interest in a financial institution

Question 3: Which of the following is an example of a contingent liability under IAS 37?

Which action should you take?

Choose only one option

A potential obligation depending on future events

A present obligation arising from past events

An obligation resulting from a prior court judgment

An estimated liability to be settled within the next year

Question 4: How should an entity classify a lease under IFRS 16?

Which action should you take?

Choose only one option

A lease's classification depends on the ownership transfer of the leased asset

A lease is classified as either a finance lease or an operating lease based on the present value of payments

A lease is classified based on the length of the lease term

Leases are not classified and are recognized uniformly

Question 5: Under the Dodd-Frank Act, which of the following would require a compliance audit?

Which action should you take?

Choose only one option

Mortgage servicing regulations

Asset management fee disclosures

Credit card interest rates

Bank lending policies

Question 6: What does IFRS 9 require for impairment of financial assets at amortized cost?

Which action should you take?

Choose only one option

Provision based on incurred credit loss

Provision based on market risk factors

Provision based on historical credit loss

Provision based on expected credit loss