Bittersweet Ltd is a listed company and a new client of Cadet Partners, a medium sized audit firm. Claud Peters 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 entity, in accordance with ASA 315 (ISA 315). One audit manager is leading the group investigating the industry and economic effects while another is helping Claud consider issues at the entity level. Claud 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, Seema Saint, 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 information provided, can you conclude that Bittersweet Ltd complies with Principle 4 of the ASX Corporate Governance Council’s Corporate governance principles and recommendations? Explain.