Preview Questions Internal Auditor | Role Specific Skill

Question 1: How does IFRS 10 determine control over an entity for consolidation purposes?

Which action should you take?

Choose only one option

By the ability to influence significant decisions of the entity

By having majority voting rights in the subsidiary

By the amount of ownership in voting shares

By the ability to govern the financial and operating policies of the entity

Question 2: In accordance with IFRS 13, how is fair value defined?

Which action should you take?

Choose only one option

The historical cost adjusted for inflation

The value derived from the current market price

The price that would be received to sell an asset or transfer a liability in an orderly transaction

The value determined based on discounted cash flows

Question 3: What is the purpose of conducting a risk assessment matrix in the context of risk management for BFSI companies?

Which action should you take?

Choose only one option

To track profitability and predict future financial trends

To evaluate employees' exposure to organizational risk

To assess market conditions and adjust the portfolio

To prioritize risks based on likelihood and impact, and decide mitigation strategies

Question 4: In assessing internal controls, which of the following is the most effective method for identifying risk?

Which action should you take?

Choose only one option

Reviewing historical audit findings without analysis

Performing a risk assessment to evaluate internal processes

Monitoring only external audits for compliance issues

Relying on financial statements to identify potential risks

Question 5: Which of the following tools is most commonly used to assess the potential impact of various risks?

Which action should you take?

Choose only one option

Heat maps

Monte Carlo simulations

Balanced scorecards

PEST analysis

Question 6: What is the most effective way to ensure that risk management strategies are successfully implemented in a large organization?

Which action should you take?

Choose only one option

By relying solely on external consultants for risk evaluation

By integrating risk management into day-to-day business operations

By focusing only on financial risks

By conducting annual risk assessments only