Day: August 3, 2025

Bash and Co LLP is the external auditor of Big Brum plc, a listed company.

The directors of Big Brum plc have requested that Bash and Co LLP carry out a review engagement assessing the effectiveness of its corporate governance policies against the UK Corporate Governance Code.

For the above review engagement, select which part of the engagement description constitutes the subject matter?

Select ONE answer:

1. Big Brum plc’s corporate governance policies
2. The UK Corporate Governance Code
3. The directors of Big Brum plc
4. Bash and Co LLP

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 == > The subject mater under examination are the company’s corporate governance policies. These policies are to be assessed against the UK Corporate Governance Code, which is the suitable criteria. The responsible party is Big Brum plc, the party commissioning the report, who has the responsibility to apply the UK Corporate Governance Code. Bash and Co LLP is the practitioner, responsible for gathering the appropriate evidence and issuing an appropriate opinion.
2. Not correct
3. Not correct
4. Not correct

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