Tag: Management Information Systems

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.

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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.

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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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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.

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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

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Accounting Multiple Choice Question – 27 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

Big Staffie plc is currently drawing up a shortlist of potential members of its audit committee.

Under the UK Corporate Governance Code, the shortlist must comprise only?

Select ONE answer:

  1. Independent non-executive directors with recent and relevant financial experience
  2. Independent non-executive directors with at least one who has recent and relevant financial experience
  3. Non-executive directors with recent and relevant financial experience
  4. Non-executive directors with at least one who has recent and relevant financial experience

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 == > Provisions supporting main principle C3 (accountability: audit committee and auditors) of the Code clearly state that the requirement is for independent non-executive directors, with at least one member of the committee needing to have recent and relevant financial experience, but not all of them.
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 26 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

Shareholders often believe the external (or statutory) auditor’s opinion means that the financial statements of a company are ‘correct’.

If the published financial statements are subsequently found to be ‘incorrect’, perhaps due to a fraud, shareholders then blame the auditor, but responsibility for preventing and detecting fraud and error lie with?

Select ONE answer:

  1. The directors of the company only
  2. The directors and management of the company
  3. The management of the company only
  4. The company’s 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 2

  1. Not correct
  2. Correct == > Both the directors and the management have responsibility as senior management to protect the company against fraud and irregularity.
  3. Not correct
  4. Not correct

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