Preview Questions Internal Auditor | Role Specific Skill

Question 1: Which accounting standard primarily governs financial reporting for financial instruments under IFRS?

Which action should you take?

Choose only one option

IAS 1

IAS 16

IFRS 9

IFRS 7

Question 2: What is the core difference between IFRS 16 and IAS 17 regarding lease accounting?

Which action should you take?

Choose only one option

Treatment of leasehold improvements

Use of fair value for leased assets

Recognition of right-of-use assets and lease liabilities

Recognition of operating lease liabilities

Question 3: In enterprise risk management (ERM), what is the first step in identifying risks in a financial institution?

Which action should you take?

Choose only one option

Conduct an external assessment by a third-party firm

Review historical incidents of fraud and error

Perform a detailed audit of financial statements

Establish a risk management committee and define risk appetite

Question 4: 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 5: During a compliance audit of an insurance company, what is a key area to focus on regarding Solvency II regulations?

Which action should you take?

Choose only one option

Ensuring insurance policies comply with tax laws

Verifying claims settlement procedures

Reviewing insurance premiums for fairness

Assessing the company's solvency position and capital adequacy

Question 6: What is the importance of liquidity risk disclosures in financial statements for BFSI firms?

Which action should you take?

Choose only one option

To provide transparency on the firm's ability to meet short-term obligations

To identify employee compensation issues

To calculate the overall profit margin of the company

To forecast future market share for the firm