Which of These Is Not a Condition That Must Be

question 20

Multiple Choice

Which of these is not a condition that must be met in order for a company to be registered as an authorised audit company?

• A) one of the directors of the company must be a registered company auditor.
• B) each share in the company must be held and beneficially owned by an individual or the legal personal representatives of an individual.
• C) a majority of the votes that may be cast at a general meeting of the company attach to shares in the company that are beneficially owned by individuals who are registered company auditors.
• D) the company must not be under external administration.

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Definitions:

Margin

Net operating income divided by sales.

Average Operating Assets

The average value of assets used during a specific period in the day-to-day operations of a business.

Net Operating Income

An entity's income from operations, calculated by subtracting operating expenses from revenues generated from normal business operations, excluding non-operating income and expenses.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the business assets.