Accounting Multiple Choice Question – 22 March 2025

In relation to the external audit or statutory audit of a limited company in the UK, a colleague has made three statements below.

Statement 1 To act as statutory auditor, the person appointed must be a member of a recognised supervisory body.

Statement 2 To act as statutory auditor, the person appointed must be either a body corporate or a partnership.

Statement 3 To act as statutory auditor, the person appointed must hold a recognised qualification obtained in the UK.

Identify whether the statements are true or false?

Select ONE answer:

1. Statement 1. True and Statement 2. False and Statement 3. False
2. Statement 1. False and Statement 2. True and Statement 3. False
3. Statement 1. True and Statement 2. False and Statement 3. True
4. Statement 1. False and Statement 2. True and Statement 3. True

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > True False False – Sole practitioners can be appointed as statutory auditors and certain overseas qualifications may be recognised.
2. Not correct
3. Not correct
4. Not correct

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