Preview Questions Internal Auditor | Role Specific Skill

Question 1: What should an internal auditor focus on when conducting a compliance audit related to external auditors?

Which action should you take?

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Assessing revenue trends during audits

Examining the employee satisfaction surveys

Ensuring that the external auditor's work aligns with regulatory standards

Reviewing the cash flows of external auditors

Question 2: Under IFRS 13, which of the following is true about the fair value measurement?

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Fair value is equivalent to historical cost

Fair value is only applicable to financial instruments

Fair value is always measured based on the market price of a similar asset

Fair value is determined by the highest and best use of an asset

Question 3: How does the concept of accrual accounting influence financial reporting in BFSI firms?

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It emphasizes the cash-based accounting method

It requires that revenue and expenses be recognized when earned or incurred, regardless of cash flow

It allows for the depreciation of assets without financial reporting impact

It is primarily used to calculate annual tax obligations

Question 4: How does the likelihood and impact matrix help in risk prioritization?

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It provides a financial model for predicting risk costs

It allows auditors to quantify and prioritize risks based on their probability and potential impact

It focuses only on operational risks

It focuses on asset valuation under risk scenarios

Question 5: Which of the following is NOT considered a core component of an internal control system as defined by the COSO framework?

Which action should you take?

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Risk assessment

Employee retention strategies

Control environment

Monitoring activities

Question 6: What is the core principle for the classification of financial liabilities under IFRS 9?

Which action should you take?

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Liabilities are classified based on the purpose of their use

Liabilities are classified as either at amortized cost or fair value

Liabilities are classified based on the maturity profile

Liabilities are classified based on the entity's ability to pay