Why would the Financial Secretary appoint an inspector if there is no court order?

• A. The company wants more audits.
• B. Suspicion of fraud in the company.
• C. To meet regulatory deadlines.
• D. To approve governance.

Answer: (B)

The key idea is that an inspector appointment is a means to investigate potential misconduct when public interest may be harmed. The Financial Secretary can appoint an inspector to thoroughly look into a company’s affairs without needing a court order, giving the inspector access to books, records, and people to uncover any fraud or serious irregularities.

So, the reason for appointing an inspector without a court order is suspicion of fraud in the company. This is a proactive, investigative move aimed at uncovering wrongdoing and protecting stakeholders.

The other options describe routine audits, meeting regulatory deadlines, or governance approvals, which are not the circumstances that would trigger an inspector's appointment.