Adams Apple Traders Limited is one of the traders of iPads in South Africa. The entity got the right from the makers of iPads to trade them in South Africa. The entity is in the process of selecting two new non-executive directors. The year 2019 was not a good financial year for Adams Apple Traders Limited. The entity only managed to break even in the current year under audit even though other companies selling the same product made significant gains. As such your audit team also performed risk assessment procedures as part of the audit.
While performing the risk assessment procedures the audit team noted the following system descriptions that might pose a risk of material misstatement in the revenue cycle of the company’s order department.

1. Some credit sales orders were not authorized by the credit manager
2. Telephonic sales orders were accepted from non-account holders
3. Not all sale orders were matched to packing slips and delivery notes

Explain in detail with examples the nine fundamental principles of corporate and business governance that should be applied by Adams Apple Traders Limited.

Adams Apple Traders Limited has tasked your audit team to draft recommendations on how the implementation of corporate governance could have prevented such risks identified.

Answer rating: 100% (QA)

Since Business Roundtable last updated Principles of Corporate Governance in 2012 US public companies have continued to adapt and refine their governance practices within the framework of evolving law... View the full answer