He will notify the Audit Committee once the integrated report is finalised and published in Fly's annual report. It was noted that this was the only meeting held by the Audit Committee for the financial year. New Information While you were performing audit procedures on the loans payable, you noticed that there is a loan with ABC Bank that is to be fully repaid on 15 March 2027. The loan (covenant) condition is that the Fly must maintain an asset value of R10 million every financial year; otherwise, the loan is immediately repayable to ABC Bank. You inspected the financial position and noticed that the assets are R6 million and that Fly's liabilities exceed its assets. You inquired with Mike Fisher, a Chartered Accountant of South Africa CA(SA) and Fly's Chief Financial Officer (CFO), regarding the loan that was immediately repayable to ABC Bank. He stated that there is a journal to be passed in the trade receivables at year-end to increase the assets, and when you requested the supporting documents for this journal, he could not produce any. The journal to be passed for trade receivables amount was material in amount, and upon further investigation, these were fictitious, and the CFO refused to reverse the journal. REQUIRED: 1.1 With reference to the meeting minutes of the Audit Committee, discuss the corporate governance contraventions in terms of King IV. (10 marks)