CFA Institute ESG-Investing Exam - 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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Kenneth

4 months ago

Not sure about Germany, I thought they had different rules.

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Nan

4 months ago

Totally agree, France is definitely on that list.

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Letha

5 months ago

Wait, the UK doesn't have this? That's surprising!

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Keith

5 months ago

I think Germany does too, right?

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Margurite

5 months ago

France has that joint audit rule for sure!

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Jaleesa

5 months ago

I thought France was the only country with this rule, but I might be mixing it up with another topic we covered.

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Lashunda

6 months ago

The UK doesn't have a joint audit requirement, right? I think I read that somewhere in our practice materials.

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Krissy

6 months ago

I remember studying about Germany's regulations, and I feel like they might have something similar, but I can't recall the specifics.

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Tanja

6 months ago

I think France has that joint audit requirement, but I'm not entirely sure if it's just for public interest entities or if it applies more broadly.

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Vivan

6 months ago

I'm confident the answer is France. I remember learning about their joint audit rules in class. Time to move on to the next question.

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Fannie

6 months ago

This seems like a straightforward question, but I want to make sure I don't miss anything. I'll read through the options again and see if I can eliminate any of the choices.

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Victor

6 months ago

Wait, I thought Germany also had a joint audit requirement for public companies. I'm going to double-check that before answering.

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Bernardo

6 months ago

Okay, let me see. I know France has some strict audit requirements, so that's probably the right answer. I'll mark that one and move on.

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Fausto

6 months ago

Hmm, I'm not too sure about this one. I'll need to think it through carefully and review my notes on audit requirements in different countries.

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Regenia

11 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

10 months ago

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

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Wenona

10 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

11 months ago

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

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Roxane

11 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

10 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

11 months ago

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

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Rodolfo

11 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

12 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

10 months ago

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

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Ramonita

10 months ago

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

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Justine

10 months ago

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

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Haley

11 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

12 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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