Accounting Multiple Choice Question – 28 August 2025

Which ONE of the following procedures should NOT be carried out after the audit firm has decided to accept an appointment as auditor?

Select ONE answer:

1. Perform checks to ensure that there are no legal or ethical reasons why the new audit firm cannot act as the auditor
2. Ensure that the outgoing auditors’ removal/resignation has been properly conducted
3. Ensure that a resolution has been passed at the general meeting to appoint the new auditors
4. Submit a letter of engagement to the 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 1

1. Correct == > Checks on legal and ethical restrictions should be performed before the appointment is accepted. Once the appointment is accepted, legal and professional obligations need to be addressed, options B and C (as per Companies Act 2006) and option D as per ISA 210, Agreeing the Terms of Audit Engagements.
2. Not correct
3. Not correct
4. Not correct

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