Tag: Auditing

Accounting Multiple Choice Question – 1 June 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Photo by Nataliya Vaitkevich on Pexels.com

The UK Corporate Governance Code requires that the percentage of the board of directors of a listed company (excluding the chairman) who should be independent non-executive directors is?

Select ONE answer:

  1. 1.Between 10% and 24 %
  2. 2.Between 25% and 39 %
  3. 3.Between 40% and 49 %
  4. 4.50 % or over

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 == > One of the provisions supporting main principle B1 (effectiveness: the composition of the board) is that at least 50% of the board, excluding the chairman, should be independent non-executive directors.

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

Accounting Multiple Choice Question – 31 May 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Photo by Olya Kobruseva on Pexels.com

Alex is the chief executive of Big staffie plc.

The company’s remuneration committee has recently been putting together a new long-term incentive scheme for Alex, the details of which have now been agreed.

However, under the requirements of the UK Corporate Governance Code, before matters can be finalised the scheme should be approved by the company’s….?

Select ONE answer:

  1. Board of directors
  2. Shareholders
  3. Chairman
  4. 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 2

  1. Not correct
  2. Correct == > This is set out in provisions supporting main principle D1 (remuneration: level and components of remuneration) of the Code.
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 30 May 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Photo by Nataliya Vaitkevich on Pexels.com

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.

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

Accounting Multiple Choice Question – 29 May 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Photo by Olya Kobruseva on Pexels.com

Bob is currently full-time executive director of The Mighty Staffie plc, a FTSE 100 company.

He has been approached by the executive directors of Bad Yorkie plc, another FTSE 100 company, who would like Bob to take on the role of chairman of their plc in addition to her existing role with The Mighty Staffie plc.

In this situation, the guidance provided by the UK Corporate Governance Code means that?

Select ONE answer:

  1. Bob should be allowed to accept the offer
  2. Bob should not be allowed to accept the offer
  3. Bob should only be allowed to accept the offer if she can show she has the available time
  4. Bob should only be allowed to accept the offer if the non-executive directors of both companies agree

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 == > As a full-time executive director of a FTSE 100 company, the guidance is that Bob should not be permitted to take on the chairmanship of another FTSE 100 company. This revision is set out in provisions supporting main principle B3 (effectiveness: commitment) of the Code.
  3. Not correct
  4. Not correct

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

Accounting Multiple Choice Question – 28 May 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

apple devices books business coffee
Photo by Serpstat on Pexels.com

Big Staffie plc is considering the company’s systems of risk management and internal control.

Under the requirements of the UK Corporate Governance Code, who is responsible for maintenance of sound risk management and internal control systems?

Select ONE answer:

  1. Just the executive directors
  2. Just the non-executive directors
  3. The entire 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 3

  1. Not correct
  2. Not correct
  3. Correct == > The entire board is responsible: main principle C2 (accountability: risk management and internal control) of the Code.
  4. Not correct

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