ACCA AA · Chapter 2 · Question 4 of 10
Which of the following is NOT a right normally given to an external auditor by company law?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The right to require the directors to correct any misstatement identified in the financial statements
Explanation
Auditors have statutory rights of access to records, to information and explanations, and to attend and be heard at general meetings. They cannot force the directors to amend the financial statements; if a material misstatement remains uncorrected the auditor's remedy is to modify the audit opinion.
More Statutory audit, regulation and corporate governance MCQs
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- Q8Which of the following is NOT normally a responsibility of an audit committee?
- Q9Under good corporate governance practice, which of the following best describes the composition of an audit committee of a listed company?
- Q10Why do corporate governance codes recommend that the roles of chair and chief executive should not be held by the same person?