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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Regenia

2 months ago

France it is! I bet the accounting firms there love the extra billable hours from the dual audit requirement. Maybe they'll even have a 'rock-paper-scissors' tournament to decide who gets to be the lead auditor.

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Paris

1 months ago

Wow, that must keep the accounting firms on their toes!

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Wenona

2 months ago

Actually, it's just France that requires public interest entities to engage two independent accounting firms for an annual audit.

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Desiree

2 months ago

I think France and the United Kingdom have the joint audit requirement.

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Roxane

3 months ago

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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Crista

2 months ago

Yes, France is the only country among the options with this joint audit rule. It definitely adds an extra layer of complexity to the audit process.

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Annabelle

2 months ago

I agree, coordinating two audit firms can be quite challenging. It must be a complex process.

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Rodolfo

2 months ago

France is correct. It is one of the countries that have a joint audit requirement for public interest entities.

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Virgina

3 months 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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Erick

2 months ago

It's definitely a possibility, especially after seeing the benefits of joint audits in preventing fraud.

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Ramonita

2 months ago

I wonder if other countries will start implementing similar requirements in the future.

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Justine

2 months ago

I agree, it definitely helps ensure accuracy and transparency in financial reporting.

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Haley

2 months ago

I think it's a good idea to have two independent firms auditing, it adds an extra layer of oversight.

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Van

3 months 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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