Preview Questions Internal Auditor | Role Specific Skill

Question 1: Which of the following methods is used for the measurement of goodwill under IFRS 3?

Which action should you take?

Choose only one option

Revaluation method

Equity method

Purchase method

Fair value method

Question 2: Which of the following would be considered a "material" misstatement in the context of financial reporting for banks?

Which action should you take?

Choose only one option

An error in the calculation of interest on loans that does not exceed 1% of total assets

A discrepancy in reporting depreciation methods that does not affect profitability

An error in the timing of revenue recognition for an immaterial amount

A misstatement that could influence the decision-making of users of financial statements

Question 3: In relation to IAS 32, how is an instrument classified as equity or liability?

Which action should you take?

Choose only one option

It depends on whether the issuer has the obligation to deliver cash or another financial asset

It is classified depending on the issuer's profitability

It is classified based on the duration of the instrument

It is classified based on the company's cash flow projections

Question 4: How should an auditor verify compliance with AML regulations during a compliance audit?

Which action should you take?

Choose only one option

By evaluating the company's stock market performance

By reviewing transaction reports and KYC information for consistency

By evaluating the management structure of the company

By assessing the company's asset allocation

Question 5: What is the primary purpose of conducting a business impact analysis (BIA) as part of a risk management process in BFSI organizations?

Which action should you take?

Choose only one option

To assess the effectiveness of marketing campaigns

To measure employee performance in crisis situations

To evaluate the financial stability of the organization

To determine the impact of potential threats on critical business operations

Question 6: What is the primary objective of IFRS 8 related to segment reporting?

Which action should you take?

Choose only one option

To provide information about the performance of operating segments

To focus on the revenue recognition of each segment

To disclose only the largest revenue-generating segment

To evaluate the overall financial health of the organization