The Corporations Act Requires That Auditors Are Competent

question 9

Multiple Choice

The Corporations Act requires that auditors are competent. To be suitably qualified the person must:

• A) be a member of the ICAA, CPA Australia, the National Institute of Accountants or other prescribed body.
• B) hold a degree, diploma or certificate from a university or other prescribed body.
• C) be a fit and proper person to be registered as an auditor.
• D) all of the above.

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Definitions:

Marginal Propensity

The tendency of an individual or household to spend an extra unit of currency, reflecting the change in consumption from a change in income.

Unplanned Inventory

Excess goods that businesses unintentionally accumulate due to lower-than-expected demand, leading to potential adjustments in production or pricing strategies.

Real GDP

stands for Real Gross Domestic Product, which measures the value of all goods and services produced by an economy over a specific period, adjusted for inflation.

Aggregate Expenditure

The total amount of spending in an economy, including consumption, investment, government purchases, and net exports.