Preview Questions Internal Auditor | Role Specific Skill

Question 1: Which of the following is an example of a preventive control in the internal control system of an insurance firm?

Which action should you take?

Choose only one option

Conducting fraud risk assessments

Segregation of duties

Monthly reconciliation of bank accounts

Approval of policy claim settlements by senior management

Question 2: In relation to IAS 32, how is an instrument classified as equity or liability?

Which action should you take?

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It depends on whether the issuer has the obligation to deliver cash or another financial asset

It is classified depending on the issuer's profitability

It is classified based on the duration of the instrument

It is classified based on the company's cash flow projections

Question 3: In IFRS 16, how should a lessee account for a lease liability?

Which action should you take?

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At the present value of future lease payments

As a contingent liability

Only when lease payments are due

At the asset's market value

Question 4: Which of the following is the correct method for accounting for intangible assets under IAS 38?

Which action should you take?

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They should be recognized at net realizable value

They should be recognized at cost or revalued if applicable

They are recognized at their market value

They should be recognized at historical cost less depreciation

Question 5: Which framework is commonly used by organizations for establishing internal controls?

Which action should you take?

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IFRS Standards

GAAP Principles

COSO Framework

Basel III Framework

Question 6: Which of the following best defines "compliance auditing" in the BFSI sector?

Which action should you take?

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A systematic review of policies and procedures to ensure legal and regulatory compliance

The assessment of operational efficiency in business processes

The identification and mitigation of fraud risk

The analysis of financial statements for accuracy and adherence to accounting principles