Preview Questions Internal Auditor | Role Specific Skill

Question 1: What is a "risk register," and how is it used in risk management?

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A software tool for tracking financial losses

A strategy used to eliminate identified risks

A process for evaluating the efficiency of internal controls

A tool that documents all identified risks, their potential impact, and actions to address them

Question 2: Which of the following is the primary objective of implementing internal controls in an organization?

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Improve employee performance

Ensure compliance with laws

Safeguard assets

Enhance financial performance

Question 3: Which statement is correct regarding the accounting treatment of financial instruments under IFRS 9?

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Financial assets are classified into two categories: amortized cost and fair value

Financial assets must be measured at fair value at all times

Financial instruments are measured solely based on their risk profile

Financial liabilities can only be measured at amortized cost

Question 4: What is the primary goal of an internal audit's risk-based approach in assessing internal controls?

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To limit audit resources to specific departments only

To audit every control equally without prioritization

To focus on the most significant risks and prioritize testing of controls based on their potential impact

To primarily evaluate operational costs

Question 5: What is the role of an internal auditor in ensuring the accuracy of financial statements in light of regulatory changes?

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The auditor must focus on revenue recognition practices

The internal auditor must ensure that the financial reporting is updated in line with new regulations

The auditor ensures compliance with external regulations

The auditor should primarily focus on profit margin calculations

Question 6: Which of the following is required by IAS 12 for deferred tax assets and liabilities?

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No recognition of deferred taxes in the financial statements

Recognition of deferred tax based on temporary differences

Recognition of deferred tax only for unused tax losses

Permanent differences should be treated as deferred taxes