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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?
Suggested Answer: A
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37 comments · newest first
CH
Charlesetta
12 months ago
Really? I didn't know shareholders had that power. Sounds surprising!
EM
Emmett
12 months ago
Wait, are you sure? I thought the finance director had a role in this.
JU
Julie
1 year ago
Definitely the shareholders, they have the final say!
RE
Reyes
1 year ago
I thought it was the board that did that?
BR
Brock
1 year ago
It's usually the shareholders who appoint the external auditor.
RO
Roxane
1 year ago
I’m pretty certain it’s the shareholders who appoint the external auditor, but I might be mixing it up with internal auditors.
PA
Paz
1 year ago
I have a feeling it could be the finance director, but that seems less common.
IR
Irene
1 year ago
I remember practicing a question like this, and I think it was the board that makes the appointment.
FR
Francisca
1 year ago
I think the external auditor is usually appointed by the shareholders, but I'm not entirely sure.
NI
Nieves
1 year ago
Okay, let me see here. Red Hat and Ubuntu make sense, but I'm not familiar with the other options like Debian and Amazon Linux. I'll have to guess on those and hope I get it right.
PR
Precious
1 year ago
Ah, I think I've got it. I'll highlight the plug-in step, select Debug, and then attach the debugger to the w3wp.exe process. That should help me identify the problem and get the plug-in working again.
HE
Helene
1 year 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.
BR
Bronwyn
1 year ago
C) Shareholders
TU
Tula
1 year ago
Shareholders are the ones who appoint the external auditor.
DO
Dorothea
1 year ago
D) Chief operating officer
DO
Dominic
1 year ago
C) Shareholders
TO
Tom
1 year ago
B) Finance director
CH
Chara
1 year ago
A) The Board
TA
Tammara
2 years ago
The chief operating officer? Really? That's like asking the fox to guard the henhouse!
AL
Alaine
1 year ago
B) Finance director
AN
Annice
1 year ago
C) Shareholders
DA
Dahlia
1 year ago
A) The Board
JA
Janine
1 year ago
B) Finance director
AD
Adolph
1 year ago
C) Shareholders
PA
Paris
1 year ago
A) The Board
YA
Yasuko
2 years ago
Wait, isn't it the Board that appoints the external auditor? I thought that was a standard corporate governance practice.
MI
Micah
1 year ago
That's right, the Board is usually responsible for appointing the external auditor.
TU
Tula
1 year ago
Yes, you are correct. The Board typically appoints the external auditor.
EL
Elmer
2 years ago
I'm pretty sure the finance director is the one who appoints the auditor. They're in charge of the finances, after all.
DO
Dortha
1 year ago
D) Chief operating officer
LE
Leonor
1 year ago
C) Shareholders
EM
Emerson
2 years ago
B) Finance director
VO
Vonda
2 years ago
A) The Board
GE
Gerardo
2 years ago
Actually, I believe it's the shareholders who appoint the external auditor because they have a vested interest in the financial statements.
FE
Felice
2 years ago
The shareholders definitely appoint the external auditor. That's a no-brainer!
LA
Lajuana
2 years ago
I agree with Ressie, the Board is responsible for appointing the external auditor.
RE
Ressie
2 years ago
I think the Board appoints the external auditor.