Ajax Ltd is a listed company and a new client of Delaware Partners, a medium sized audit firm. Jeffrey Rush is the engagement partner on the audit and has asked the members of the audit team to commence the process of gaining an understanding of the client, in accordance with ASA 315. One audit manager is leading the group investigating the industry and economic effects while another is helping Jeffrey consider issues at the entity level. Jeffrey is holding discussions with members of the audit committee and his talks will cover a wide range of issues, including the ASX Corporate Governance Council’s Corporate governance principles and recommendations. He has a meeting arranged for next week with the four members of the audit committee, including the chair of the committee, Stella South, who, like the other members of the audit committee, is an independent director and is the chair of the board of directors.

Required

(a) Make a list of the main factors that will be considered by each audit manager’s group.

(b) Based on the above information, can you conclude that Ajax Ltd complies with Principle 4 of the ASX Corporate Governance Council’s Corporate governance principles and recommendations? Explain.