Preview Questions Internal Auditor | Role Specific Skill

Question 1: Which of the following is a key component of an effective internal control system?

Which action should you take?

Choose only one option

High employee turnover

Lack of managerial oversight

Unclear reporting structures

Strong internal audit function

Question 2: What is the most common cause of control breakdowns in financial institutions?

Which action should you take?

Choose only one option

Lack of proper training for employees

Frequent changes in senior management

Ineffective supervision of employees

Over-reliance on technology

Question 3: During a compliance audit, which of the following would most likely be considered a material weakness?

Which action should you take?

Choose only one option

A temporary delay in submitting a financial report

Minor fluctuations in the market index

A failure to comply with regulatory reporting deadlines

Minor discrepancies in employee payroll records

Question 4: Which of the following is a criteria for recognizing a financial liability under IFRS 9?

Which action should you take?

Choose only one option

It must be settled with equity instruments

It must involve a contractual obligation to deliver cash or another financial asset

It must be recorded at fair value under all circumstances

It can be a voluntary obligation with no due date

Question 5: In relation to internal controls, IT General Controls (ITGCs) primarily aim to:

Which action should you take?

Choose only one option

Protect the integrity of financial reporting and operational systems

Facilitate compliance with taxation laws

Ensure that employees follow ethical guidelines

Ensure that all transactions are reviewed by senior management

Question 6: What is the role of an internal auditor in ensuring the accuracy of financial statements in light of regulatory changes?

Which action should you take?

Choose only one option

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