As a General Rule, the Auditor Is Appointed by the Shareholders

question 7

Multiple Choice

As a general rule, the auditor is appointed by the shareholders at the annual general meeting. Which of the following is not true concerning the appointment of an auditor?

• A) In practice the shareholders generally accept the recommendations of the directors concerning the appointment
• B) the appointment stands for 12 months until the next annual general meeting
• C) the company is liable to pay reasonable fees and expenses of the auditor.
• D) an auditor ceases to hold office after a company goes into liquidation.

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Definitions:

Trait Approach

A perspective in leadership research that focuses on identifying specific qualities, characteristics, and attributes that distinguish effective leaders from others.

Researchers

Individuals who systematically investigate and study materials, sources, or phenomena using scientific methods to establish facts and reach new conclusions.

Immediate Result

The direct and swift outcomes that follow a specific action or decision without delay.

Delayed Effect

A situation where the impact or result of an action, event, or decision is not immediately apparent, but becomes evident later on.