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

9 months ago

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

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Nan

9 months ago

Totally agree, France is definitely on that list.

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Letha

9 months ago

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

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Keith

10 months ago

I think Germany does too, right?

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Margurite

10 months ago

France has that joint audit rule for sure!

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Jaleesa

10 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

10 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

10 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

11 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

11 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

11 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

11 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

11 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

11 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

1 year 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 year ago

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

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Wenona

1 year 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

1 year ago

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

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Roxane

1 year 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

1 year 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

1 year ago

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

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Rodolfo

1 year 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

1 year 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

1 year ago

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

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Ramonita

1 year ago

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

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Justine

1 year ago

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

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Haley

1 year 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

1 year 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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