Preview Questions Internal Auditor | Role Specific Skill

Question 1: Which of the following is an important step in a compliance audit related to the Foreign Account Tax Compliance Act (FATCA)?

Which action should you take?

Choose only one option

Verifying tax filing deadlines and penalties

Ensuring internal audit procedures are consistent with FATCA requirements

Reviewing foreign exchange transactions for inconsistencies

Ensuring proper reporting of U.S. account holders and foreign financial institutions

Question 2: What is the primary focus of the Risk Management Framework (RMF) in a BFSI organization?

Which action should you take?

Choose only one option

To minimize operational risk by setting clear policies

To ensure compliance with external regulatory requirements

To identify and mitigate strategic, financial, and operational risks

To increase profitability through aggressive risk-taking

Question 3: Which of the following best describes the treatment of intangible assets under IAS 38?

Which action should you take?

Choose only one option

They must be amortized over a period not exceeding 20 years

They are only recognized when purchased from an external party

They must be written off if not generating income

They are not amortized unless their useful life is finite

Question 4: In the context of risk management, what is the risk appetite of an organization?

Which action should you take?

Choose only one option

The amount of risk the regulatory body permits the firm to take

The level of risk the organization is willing to accept in pursuit of its objectives

The degree of operational risk within the internal processes

The total financial capital allocated to risk management

Question 5: In the course of a compliance audit, how should an auditor approach the evaluation of a bank's risk management framework?

Which action should you take?

Choose only one option

By reviewing the profitability of the bank's loan portfolio

By verifying the bank's adherence to environmental regulations

By assessing the alignment of risk management practices with regulatory requirements

By conducting a financial analysis of the bank's competitors

Question 6: Which of the following is NOT typically included in a compliance audit for financial institutions?

Which action should you take?

Choose only one option

Financial statement accuracy

Regulatory reporting

Anti-money laundering (AML) practices

Customer data protection