Question 1

4. What is transfer pricing in international trade auditing?

Accepted Answer

c) A strategy to minimise tax liability

Question 2

29. What is the purpose of a sanctions audit in international trade auditing?

Accepted Answer

c) To ensure compliance with international sanctions

Question 3

24. What is the purpose of an anti-money laundering audit in international trade auditing?

Accepted Answer

b) To detect and prevent money laundering activities

Question 4

13. What does the term Letters of Credit refer to in international trade auditing?

Accepted Answer

b) Financial documents used in international trade payments

Question 5

14. What is the primary goal of a supply chain audit in international trade?

Accepted Answer

c) To enhance supply chain efficiency

Question 6

20. What does IMF stand for in the context of international trade?

Accepted Answer

b) International Monetary Fund

Question 7

28. What is trade facilitation in international trade auditing?

Accepted Answer

c) The simplification and streamlining of trade procedures

Question 8

23. What is an Open Account payment method in international trade?

Accepted Answer

c) A method where goods are shipped before payment

Question 9

26. What does FTA stand for in international trade?

Accepted Answer

a) Free Trade Agreement

Question 10

27. What is the primary purpose of an environmental audit in international trade?

Accepted Answer

a) To assess the environmental impact of trade activities

Question 11

2. Which organisation sets international standards for trade auditing?

Accepted Answer

b) WTO

Question 12

11. What does ROA stand for in the context of international trade auditing?

Accepted Answer

a) Return on Assets

Question 13

22. What is trade finance in international trade auditing?

Accepted Answer

c) The financing of international trade transactions

Question 14

3. What is the purpose of a customs audit?

Accepted Answer

c) To verify the accuracy of customs declarations

Question 15

18. What is an export subsidy?

Accepted Answer

b) A government payment to encourage exports

Question 16

1. What is the primary goal of international trade auditing?

Accepted Answer

b) To ensure compliance with trade laws and regulations

Question 17

9. What is the purpose of a due diligence audit in international trade?

Accepted Answer

b) To assess the risk associated with a business transaction

Question 18

12. Which of the following is not typically a part of an export audit process?

Accepted Answer

c) Review of marketing strategies

Question 19

17. What is the primary function of the Harmonized System (HS) code in international trade?

Accepted Answer

b) To classify products for customs and statistical purposes

Question 20

5. Which of the following is not a common risk in international trade auditing?

Accepted Answer

c) Marketing risk

International trade Auditing — Question Paper