Preview Questions Internal Auditor | Role Specific Skill

Question 1: Which of the following is an example of a non-financial risk that an internal auditor should assess?

Which action should you take?

Choose only one option

Market risk due to volatile stock prices

Liquidity risk caused by cash flow problems

Reputational risk stemming from negative public perception

Credit risk resulting from borrower defaults

Question 2: Which of the following is a key challenge in managing operational risk in the BFSI industry?

Which action should you take?

Choose only one option

Insufficient demand for financial products

Regulatory uncertainty and compliance requirements

High employee turnover rates

Lack of technological advancements

Question 3: Under IFRS 15, how is revenue recognized for contracts with customers?

Which action should you take?

Choose only one option

At the point of initial contract signing

Upon delivery of goods or services

When the performance obligation is satisfied

Upon receipt of the payment

Question 4: 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 5: 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 6: Which control activity is most effective in detecting unauthorized access to sensitive financial data within an organization?

Which action should you take?

Choose only one option

Weekly reports on business profitability

Monthly management meetings to review performance

Regular user access reviews and audit trails

Daily reconciliation of financial transactions