Preview Questions Internal Auditor | Role Specific Skill

Question 1: In a risk-based internal audit approach, which of the following would be the most effective way to prioritize audits?

Which action should you take?

Choose only one option

Based on the perceived risk exposure and impact of potential failures

By the size of the department being audited

By the frequency of audits conducted in the past

Based on the seniority of the department head

Question 2: Under IFRS 13, how is fair value defined?

Which action should you take?

Choose only one option

The amount for which an asset could be exchanged between knowledgeable parties

The present value of future cash flows from an asset

The cost of replacing an asset at current market value

The cost of acquisition or reproduction

Question 3: During a compliance audit of an insurance company, what is a key area to focus on regarding Solvency II regulations?

Which action should you take?

Choose only one option

Ensuring insurance policies comply with tax laws

Verifying claims settlement procedures

Reviewing insurance premiums for fairness

Assessing the company's solvency position and capital adequacy

Question 4: What is the purpose of COSO (Committee of Sponsoring Organizations) framework in internal controls?

Which action should you take?

Choose only one option

To measure the financial performance of an organization

To set the global accounting standards for financial reporting

To provide a structured approach for evaluating and improving the effectiveness of internal controls

To ensure compliance with international tax regulations

Question 5: When conducting a risk assessment, what is the first step an internal auditor should take?

Which action should you take?

Choose only one option

Identify and define the risks that could impact the organization

Establish the risk tolerance levels

Create a risk mitigation plan

Analyze the existing controls

Question 6: Under IAS 10, when is an event considered adjusting for the purpose of financial statement preparation?

Which action should you take?

Choose only one option

When the event does not affect assets and liabilities

When the event occurs after the reporting period

When the event provides evidence of conditions existing at the balance sheet date

When the event is not disclosed in footnotes