Preview Questions Internal Auditor | Role Specific Skill

Question 1: What is the role of the auditor in relation to fair value measurements in financial statements?

Which action should you take?

Choose only one option

To assess only the cost-based valuation

To verify the cash flows associated with investments

To determine the accuracy of the financial position

To ensure that fair value estimates are reasonable and appropriately disclosed

Question 2: Which of the following would most likely trigger an impairment review under IAS 36?

Which action should you take?

Choose only one option

Increase in operational efficiency

Significant adverse change in the market environment

Change in the fair value of the asset

Consistent profitability over the last quarter

Question 3: In the context of a compliance audit, what should be the primary focus when reviewing an institution's adherence to the Foreign Account Tax Compliance Act (FATCA)?

Which action should you take?

Choose only one option

Verifying the institution's tax filings for accuracy

Assessing the institution's customer satisfaction levels

Ensuring the institution reports foreign assets and income in accordance with FATCA requirements

Evaluating the institution's compliance with local environmental regulations

Question 4: In risk management, what does the term "residual risk" refer to?

Which action should you take?

Choose only one option

The remaining risk after implementing mitigation measures

The risk associated with external market factors

The risk of an unforeseen event occurring

The risk that can be controlled through internal policies

Question 5: Under IFRS 9, how is impairment of financial assets measured?

Which action should you take?

Choose only one option

By applying a forward-looking expected credit loss model

By comparing carrying amount with recoverable amount

Impairment is not applicable under IFRS 9

Using a percentage-based formula based on historical losses

Question 6: Which of the following is an example of a non-controlling interest (NCI) adjustment in consolidated financial statements?

Which action should you take?

Choose only one option

Adjustment of the parent company's share capital

Elimination of intra-group transactions

Revaluation of tangible assets in the parent company

Allocation of income and expenses of a subsidiary