$2\mathrm{.}7$

$(20$ marks $24$ minutes$)$

You are a chartered accountant employed in the finance department of MedSupplies Ltd$,$ a company that imports and sells medical supplies. The company's CEO, Mr Barty Monroe, accidentally forwarded the following email to you $($George Smith$)$ that was meant for the CFO, Mr George Simpson.

$\backslash$table$[[$From:$,$Barty Monroe bmonroe@medsupplies.co$.$za$],[$Sent:$,13$ February $20234$:$40$ PM$],[$To:$,$George Smith gsmith@medsupplies.co$.$za$],[$Subject:$,$Profits on vitamins and other matters$],[$Hi George,$],[\backslash$table$[[$I have just looked at our figures for the past financial year, and I must say, I am$],[$impressed$!$ It was a good decision to inflate the selling price of our vitamins and$],[$falsely market them as $100\%$ effective against monkey$-$pox. After the scare that$],[$the public had with the Covid pandemic, they are so gullible! Those vitamins sold$],[$like hot cakes!$]]],[\backslash$table$[[$My only concern is that, as the financial year end is approaching, that team of$],[$nosy external auditors will be here soon. Hopefully they will not ask too many$],[$questions$.]]],[\backslash$table$[[$I must say I am not a fan of the auditors. They raised all kinds of issues about the$],[$composition of our board and its committees, with which I do not agree. I firmly$],[$believe that as the CEO and member of the board, I must be part of every$],[$committee of the board to enable me to properly run this company. I remembered$],[$a few years ago, the auditors informed me that there are apparently all kinds of$],[$requirements regarding the frequency of meetings. Who has time for that? A$],[$meeting once a year for each committee is more than enough. Luckily, we have$],[$an all$-$male board of directors, so that keeps meetings short and sweet, if you$],[$know what I$\text{'}$m saying!$]]],[\backslash$table$[[$Anyhow$,$ just wanted to let you know that I am happy with the figures. Keep up$],[$the good work.$]]],[,]]$

YOU ARE REQUIRED TO:

Comment on the corporate governance of MedSupplies Ltd with reference to the King IV Code and the Companies Act.