Tag: Financial Accounting

Accounting Multiple Choice Question – 4 June 2025

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

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Big Staffie plc operates its own internal audit function, choosing not to make use of an external supplier for these services.

Considering this policy, it is vital that arrangements are established within the company to ensure that there is no compromise of the?

Select ONE answer:

  1. Independence of the internal auditors
  2. Integrity of information security systems
  3. Stewardship of directors
  4. Rigour of financial reporting processes

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 == > An effective internal audit function has, as a fundamental requirement, to always maintain its independence
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 3 June 2025

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

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The appointment of suitably qualified, independent auditors is the responsibility of a listed company’s…. ?

Select ONE answer:

  1. Shareholders
  2. Audit committee
  3. Board of directors
  4. Finance director

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 == > It is the shareholders who vote to appoint the external auditors, although this is usually on the recommendation of the audit committee and the board. The finance director may be heavily involved in the conduct of the audit but should not be actively involved in appointment except as a member of the board.
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 2 June 2025

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

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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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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.

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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

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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.

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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

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