10) In June 2001, in Oman, the Capital Market Authority issued the Corporate Governance Code, applicable to companies whose securities are listed on the Muscat Securities Market. The Code, drawn from codes of best practices from around the world but adapted to the local market, seeks to promote a "culture of compliance, transparency and accountability without limiting business initiative. Which of the following is not one of the International code of Corporate Governance ?

1. On retiring, a Chief Executive should become a chairman.
2. At least half the board, excluding the chairman, should comprise non-executive directors
3. Levels of remuneration should be sufficient to attract and retain directors
4. Chairman and chief executive officer should be separated

11) The auditor has a responsibility to plan and perform the audit so as to obtain a _________ about whether the financial statements are free of material misstatement.

1. Absolute assurance
2. Reasonable assurance
3. Maximum assurance
4. Negative assurance

12) Who approves remuneration and terms of engagement of the external auditor?

1. Shareholders
2. Board of Directors
3. Audit Committee
4. Stakeholders