Accounting Multiple Choice Question – 30 May 2025

Big Staffie plc is currently considering the re-appointment of its external (statutory) auditors.

The precise level of remuneration to be paid to the external auditors has now been agreed between the company chairman, Bob, and the senior partners of the audit firm, Bash and co.

However, under the requirements of the UK Corporate Governance Code, before matters can be finalised the chairman of Big Staffie plc needs to obtain the approval of?

Select ONE answer:

1. The nomination committee
2. The remuneration committee
3. The board of directors
4. The audit committee

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 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > This is set out in provisions supporting main principle C3 (accountability: audit committee and auditors) of the Code.

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