Page 68 - IAT

Prepared By Vijay Rajaram & Ritik Singh

Global Risk Management Institute (GRMI) Gurgaon

1. What is the primary role of internal auditors B. Minimise and control risks within an
within an organisation? organisation
C. Increase profit margins
A. To manage company finances D. Ensure customer satisfaction
B. To oversee external audits
C. To assess and improve risk management, 6. Which of the following best describes the
control, and governance processes “Three Lines of Defense” in risk management?
D. To review company policies
E. To review business processes A. Management, Internal Audit, External Audit
B. Risk Ownership, Risk Monitoring, Risk
2. Which of the following could be strategic Communication
organisation objectives? C. Operational Management, Risk & Compliance
Functions, Internal Audit
A. Market capital maximisation D. Legal, Compliance, Finance
B. Market reputation
C. Profit maximisation 7. In an audit, which of the following is a
D. Social impact preventive control?
E. All of the above
A. Reconciliation of accounts
3. Which of the following is a key principle of B. Segregation of duties
corporate governance? C. Post-transaction review
D. Fraud detection software
A. Revenue generation
B. Transparency 8. What does the acronym COSO stand for in
C. Sales optimisation risk management and auditing?
D. None of the above
A. Control of Stock Operations
4. Which of the following are tools of B. Committee of Sponsoring Organizations
Corporate Governance? C. Compliance with Standard Operations
D. Corporate Oversight Security Operations
A. Board composition
B. Whistle-Blower mechanism 9. How can analytics be leveraged in internal
C. Independence of operating committees audit?
D. Conflict of interest guidelines
E. All of the above A. To identify audit observations
B. To quantify issues
5. What is the primary objective of risk C. To identify outlier transactions
management? D. To identify appropriate samples
E. A & B
A. Eliminate all risks F. All of the above

64 | STUDENTS' FORUM INTERNAL AUDIT TODAY