Preview Questions Internal Auditor | Role Specific Skill

Question 1: Which of the following is most critical when auditing a bank's compliance with GDPR?

Which action should you take?

Choose only one option

Ensuring that data subject consent processes are well-documented and auditable

Evaluating the loan approval processes for fairness

Reviewing profit margins for compliance with tax laws

Ensuring the bank has a clear and publicly disclosed corporate strategy

Question 2: In the context of bank financial reporting, what does the term "capital adequacy ratio" refer to?

Which action should you take?

Choose only one option

The ratio of a bank's capital to its risk-weighted assets

The ratio of cash reserves to total deposits

The ratio of a bank's assets to its liabilities

The ratio of short-term debt to long-term debt

Question 3: How should auditors ensure compliance with the anti-money laundering (AML) regulations in international transactions?

Which action should you take?

Choose only one option

By assessing the profitability of foreign transactions

By reviewing the company's financial reporting on international trade

By verifying the transaction history of international clients

By ensuring that the financial institution has effective monitoring and reporting systems for cross-border transactions

Question 4: How does the internal audit function contribute to risk management in BFSI organizations?

Which action should you take?

Choose only one option

By creating a detailed list of external risk factors

By ensuring that external risks are mitigated effectively

By assessing the effectiveness of risk management processes and controls

By focusing only on the financial reporting aspects of the business

Question 5: When auditing for compliance with KYC (Know Your Customer) regulations, what is the primary focus?

Which action should you take?

Choose only one option

Ensuring customer identities are verified and documented as per regulatory requirements

Reviewing the accuracy of the bank's balance sheet

Checking compliance with marketing and advertising regulations

Assessing the liquidity of the bank's assets

Question 6: Which of the following is an example of a "corrective control" in internal controls?

Which action should you take?

Choose only one option

Implementing a multi-level approval process

Automation of business processes

Review and approval of transactions before execution

Adjusting financial records after an error is detected