Preview Questions Internal Auditor | Role Specific Skill

Question 1: Under IFRS 16, how should leases be accounted for on the balance sheet for lessees?

Which action should you take?

Choose only one option

As right-of-use assets with corresponding lease liabilities

As intangible assets

As financial assets with liabilities recorded separately

As operating expenses with no balance sheet impact

Question 2: What is the primary concern when auditing the compliance of financial instruments under IFRS 9?

Which action should you take?

Choose only one option

Reviewing depreciation methods used for fixed assets

Evaluating the market conditions that impact the instruments

Verifying that financial instruments are properly classified and impairments are recognized

Assessing the value-at-risk of financial instruments

Question 3: How should an internal auditor assess off-balance-sheet financing in financial reporting?

Which action should you take?

Choose only one option

By assessing the implications on tax liabilities

By reviewing the legal contracts related to financing

By ensuring that it is properly disclosed and does not materially misstate financial health

By evaluating the market conditions influencing financing

Question 4: How should an internal auditor assess materiality in financial statements?

Which action should you take?

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By reviewing the management's perspective

By evaluating the impact of misstatements on the decision-making process of users

By assessing the compliance with industry regulations

By considering only the quantitative aspects of the figures

Question 5: Which of the following best describes the treatment of impairment under IAS 36?

Which action should you take?

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An impairment loss is recognized when an asset's carrying amount exceeds its recoverable amount

Impairment loss is recognized only for intangible assets

Impairment is recognized when the asset is reclassified as available for sale

Impairment loss is only recognized when the asset's fair value falls below its historical cost

Question 6: Under IFRS 15, how is revenue recognized for contracts with customers?

Which action should you take?

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At the point of initial contract signing

Upon delivery of goods or services

When the performance obligation is satisfied

Upon receipt of the payment