Accounting Multiple Choice Question – 2 June 2025

Big Staffie plc external (statutory) auditors, Tick and Co, have just won a contract with Big Staffie plc to provide IT consultancy services.

Which of the following entities would usually be expected to examine the implications of this situation?

Select ONE answer:

1. The board of directors
2. The remuneration committee
3. The audit committee
4. The non-executive directors

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 3

1. Not correct
2. Not correct
3. Correct == > One of the specific roles and responsibilities accorded to the audit committee by the Code is the development and implementation of policy on the engagement of the external auditor to supply non-audit services. This is contained in provisions supporting main principle C3 (accountability: audit committee and auditors).
4. Not correct

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