Tag: Personal Finance

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

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

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

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