CFA Institute Exam ESG-Investing Topic 4 Question 9 Discussion

Actual exam question for CFA Institute's ESG-Investing exam

Question #: 9
Topic #: 4

Which of the following countries have a joint audit requirement that all public interest entities must engage at least two independent accounting firms to perform an annual audit?

AFrance

BGermany

CUnited Kingdom

Show Suggested Answer

Suggested Answer: C

Climate risks have both local and systemic impacts on asset allocation. Local risks pertain to specific regions or industries, while systemic risks can affect the entire financial system due to the global nature of climate change. (ESGTextBook[PallasCatFin], Chapter 3, Page 139)

by Shawn at Jan 23, 2025, 12:09 AM

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Roxane

Germany and the UK don't have this joint audit rule, so it has to be France. Although, can you imagine the coordination nightmare of two audit firms working together? Talk about herding cats!

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Virgina

7 days ago

Hmm, I wasn't aware of this requirement. I'll have to remember that - maybe France is trying to prevent another Enron-type scandal with this joint audit rule.

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Van

16 days ago

I think the answer is France. I remember reading about their joint audit requirement for public interest entities. Seems like a wise approach to ensure independent oversight.

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