Under the CLERP 9 Reforms Governing Auditors,which of the Following

question 19

Multiple Choice

Under the CLERP 9 reforms governing auditors,which of the following statements are correct?
I The top 500 ASX listed companies must have an audit committee.
II Former auditors are prohibited from employment in or directorships of their former clients for a period of 2 years.
III The oversight of auditors has been strengthened by the FRC.
IV Audit partners must rotate off a company's audit after a period of 5 years.

• A)I and IV;
• B)I,II and III;
• C)II,III and IV;
• D)I,II,III and IV.

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Definitions:

Recognition of Cost

The accounting principle that requires expenses to be recorded in the period in which they are incurred, regardless of when the payment is made.

Merchandise Sold

Merchandise sold refers to the goods that have been purchased by customers from a company, resulting in revenue.

Gross Profit

The difference between revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Credit Memo

A document issued by a seller to a buyer, reducing the amount owed by the buyer due to a return, error, or allowance.