CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 64 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 64
Topic #: 1

[All CIMAPRA17-BA3-1 Questions]

An external audit is an independent examination of, and expression of opinion on the financial statements of an entity.

Who of the following appoints the external auditor?

AThe Board

BFinance director

CShareholders

DChief operating officer

Show Suggested Answer

Suggested Answer: A

by Ettie at Jan 07, 2023, 05:24 PM

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Helene

2 months ago

This question is a piece of cake. The shareholders are the ones who hold the purse strings, so they get to choose the auditor.

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Dorothea

1 days ago

D) Chief operating officer

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Dominic

2 days ago

C) Shareholders

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Tom

4 days ago

B) Finance director

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Chara

1 months ago

A) The Board

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Tammara

2 months ago

The chief operating officer? Really? That's like asking the fox to guard the henhouse!

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Alaine

1 days ago

B) Finance director

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Annice

5 days ago

C) Shareholders

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Dahlia

6 days ago

A) The Board

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Janine

11 days ago

B) Finance director

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Adolph

21 days ago

C) Shareholders

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Paris

27 days ago

A) The Board

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Yasuko

2 months ago

Wait, isn't it the Board that appoints the external auditor? I thought that was a standard corporate governance practice.

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Micah

2 months ago

That's right, the Board is usually responsible for appointing the external auditor.

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Tula

2 months ago

Yes, you are correct. The Board typically appoints the external auditor.

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Elmer

2 months ago

I'm pretty sure the finance director is the one who appoints the auditor. They're in charge of the finances, after all.

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Dortha

2 months ago

D) Chief operating officer

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Leonor

2 months ago

C) Shareholders

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Emerson

2 months ago

B) Finance director

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Vonda

2 months ago

A) The Board

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Gerardo

2 months ago

Actually, I believe it's the shareholders who appoint the external auditor because they have a vested interest in the financial statements.

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Felice

2 months ago

The shareholders definitely appoint the external auditor. That's a no-brainer!

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Lajuana

2 months ago

I agree with Ressie, the Board is responsible for appointing the external auditor.

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Ressie

3 months ago

I think the Board appoints the external auditor.

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