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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7 days 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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8 days 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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9 days 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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10 days ago

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

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11 days ago

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

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13 days ago

I think the Board appoints the external auditor.

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