Month: August 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 who is the practitioner?

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 4

1. Not correct
2. Not correct
3. Not correct
4. 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.

This work is licensed under a Creative Commons Attribution 4.0 International License.

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 who is the responsible party?

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 3

1. Not correct
2. Not correct
3. Correct == >    The subject matter under examination is 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, which 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.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

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 suitability criteria?

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 2

1. Not correct
2. 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.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

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

This work is licensed under a Creative Commons Attribution 4.0 International License.

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

Statement 1 – A statutory audit gives reasonable assurance that the financial statements give a true and fair view.

Statement 2 – A negative assurance conclusion gives a limited level of assurance.

Statement 3 – Reasonable assurance is absolute assurance of the correctness of the subject matter.

Identify whether the statements made above 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. False and Statement 3. True
3. Statement 1. True and Statement 2. True and Statement 3. False
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 3

1. Not correct
2. Not correct
3. Correct == >    True – Whereas the statutory audit provides reasonable assurance through a positive assurance conclusion, in a review engagement, limited assurance is provided with the issue of the negative assurance conclusion. This can be seen in the wording of the two conclusions. True – The positive assurance conclusion includes wording ‘the financial statements give a true and fair view’, whereas the negative assurance conclusion includes the wording ‘nothing has come to our attention’, emphasising the limited nature of the assignment. False – Reasonable assurance is high assurance provided on the truth and fairness of the subject matter as opposed to absolute assurance of the correctness of the subject matter.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.