Preview Questions Internal Auditor | Role Specific Skill

Question 1: How should an internal auditor assess segregation of duties within the BFSI industry to prevent fraud?

Which action should you take?

Choose only one option

Conducting annual reviews without focusing on specific risks

Rely solely on automation for task delegation

Allow employees to rotate roles freely within departments

Ensure that critical tasks such as authorization, record-keeping, and reconciliation are performed by separate individuals

Question 2: Which of the following is the most significant challenge in conducting a compliance audit for a fintech company?

Which action should you take?

Choose only one option

Ensuring proper tax filings for international revenue

Ensuring compliance with both traditional banking regulations and emerging digital finance regulations

Verifying financial records related to blockchain transactions

Ensuring the company complies with cybersecurity regulations

Question 3: Which of the following statements about internal audits is true in the context of financial institutions?

Which action should you take?

Choose only one option

Internal auditors should focus only on the financial operations of the institution

Internal audits should be performed periodically but not necessarily be independent of management

Internal auditors should act as consultants for senior management

Internal auditors must report directly to the board or audit committee

Question 4: What is the key difference between detective and preventive controls in the context of financial reporting in BFSI?

Which action should you take?

Choose only one option

Preventive controls involve training, while detective controls involve audits

Detective controls aim to prevent fraud, while preventive controls identify fraud risks

Detective controls can only be automated, while preventive controls are manual

Preventive controls aim to stop errors before they occur, while detective controls identify them after occurrence

Question 5: How do cash flow statements support the financial reporting process in an internal audit?

Which action should you take?

Choose only one option

They calculate the tax liabilities of the company

They help assess an organization's liquidity and ability to meet its obligations

They focus on the company's market share

They are used to predict future financial trends

Question 6: What is key risk indicator (KRI) in risk management, and how is it used by internal auditors?

Which action should you take?

Choose only one option

A qualitative assessment of organizational health

A measurable value that provides an early warning for risk events, used to monitor risk exposure

A tool used for budgeting and forecasting

A control to mitigate risks within specific areas