Preview Questions Internal Auditor | Role Specific Skill

Question 1: How would an internal auditor assess compliance with the Sarbanes-Oxley Act (SOX) in a BFSI organization?

Which action should you take?

Choose only one option

By analyzing external auditor's reports

By evaluating the effectiveness of internal controls over financial reporting

By reviewing the accuracy of income tax returns

By verifying the application of accounting policies

Question 2: What is the role of internal audit in evaluating compliance controls in BFSI firms?

Which action should you take?

Choose only one option

To review employee performance in line with targets

To ensure that the organization adheres to regulatory requirements and assesses the effectiveness of compliance programs

To verify the accuracy of all financial reports

To focus solely on operational efficiency

Question 3: In accordance with IAS 1, which of the following is a requirement for financial statement presentation?

Which action should you take?

Choose only one option

Only net income should be presented in the financial statements

Financial statements must be presented fairly and consistently

Assets and liabilities should be valued at historical cost

Operating profit must be disclosed separately from other income

Question 4: What is the first step an internal auditor should take when evaluating a financial institution's compliance with the Anti-Terrorism Act (ATA)?

Which action should you take?

Choose only one option

Examining the institution's risk management framework

Assessing the institution's customer transaction monitoring system

Reviewing internal control procedures for financial transactions

Verifying the accuracy of loan servicing practices

Question 5: In assessing the effectiveness of internal controls, which of the following factors should be considered by an internal auditor in a BFSI company?

Which action should you take?

Choose only one option

The annual turnover of the organization

The personal preferences of senior management

The size of the company

The design of controls, their implementation, and ongoing monitoring

Question 6: 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