ACCA Audit and Assurance (F8) Practice Exam

Who are typically considered stakeholders in an audit?

1. Only shareholders

2. Directors and employees only

3. Shareholders, directors, employees, HMRC, suppliers, and the public

4. Only external stakeholders

The correct answer is: Shareholders, directors, employees, HMRC, suppliers, and the public

Stakeholders in an audit encompass a diverse group of individuals or entities that have an interest in the financial health and reporting of an organization. The correct choice identifies an extensive range of stakeholders, including shareholders, directors, employees, HMRC (Her Majesty's Revenue and Customs), suppliers, and the public. This group is significant because their interests can be affected by the audit outcomes. Shareholders and directors are typically concerned with the financial performance and governance of the organization. Employees may have a stake in job security and the company’s sustainability. HMRC is involved in ensuring that taxes are properly assessed and paid. Suppliers might be interested in understanding the financial stability of a customer to ensure timely payments, while the public may have broader interests regarding the ethical conduct and transparency of the entity. In contrast, the other options limit the definition of stakeholders, focusing on a narrower group, which does not capture the comprehensive range of parties that an audit impacts or who have an interest in the audit results. Thus, the correct answer reflects a holistic view of the varied parties involved in the stakes of an audit.