ExpertMedium1 markMultiple Choice
ACCA · Question 38 · Corporate and Business Law
Who normally appoints the first auditors of a newly incorporated company?
Who normally appoints the first auditors of a newly incorporated company?
Answer options:
A.
The shareholders
B.
The directors
C.
The Secretary of State
D.
Companies House
How to approach this question
Recall the procedure for the initial appointment of auditors.
Full Answer
B.The directors✓ Correct
The directors usually appoint the company's first auditors. Subsequent auditors are appointed by the shareholders at a general meeting.
Common mistakes
Assuming shareholders must make the very first appointment.
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