Preview Questions Internal Auditor | Role Specific Skill

Question 1: How does IFRS 15 define "contract cost" in relation to revenue recognition?

Which action should you take?

Choose only one option

Costs related to the disposal of assets

Costs directly attributable to fulfilling a contract

General overhead expenses

Costs incurred to acquire a contract

Question 2: How do you account for the fair value measurement of a financial asset under IFRS 9?

Which action should you take?

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At amortized cost

At fair value through profit or loss

At fair value through other comprehensive income

At historical cost

Question 3: What is the core difference between IFRS 16 and IAS 17 regarding lease accounting?

Which action should you take?

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Treatment of leasehold improvements

Use of fair value for leased assets

Recognition of right-of-use assets and lease liabilities

Recognition of operating lease liabilities

Question 4: What is the importance of tax provisions in financial reporting, and how should an internal auditor evaluate them?

Which action should you take?

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To ensure that the financial statements reflect accurate tax obligations based on current tax law

To assess cash management practices

To calculate future dividends for the company

To identify potential tax credits

Question 5: What is the significance of the SOX (Sarbanes-Oxley) Act in the design of internal controls for BFSI firms?

Which action should you take?

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It mandates that internal controls over financial reporting must be established, maintained, and tested regularly

It requires financial audits to be performed independently

It emphasizes employee training on internal procedures

It focuses on regulatory reporting only for listed companies

Question 6: How should an internal auditor evaluate the effectiveness of the Bank Secrecy Act (BSA) compliance program?

Which action should you take?

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By assessing the bank's risk management framework

By verifying the accuracy of the bank's financial statements

By reviewing transaction records and reports for potential violations

By reviewing customer service complaints related to BSA