Question: QUESTION 2 SADA, a listed company involves in the water supply business, has decided to establish an internal audit function, in line with the Bursa

QUESTION 2 SADA, a listed company involves in the

QUESTION 2 SADA, a listed company involves in the water supply business, has decided to establish an internal audit function, in line with the Bursa Malaysia Listing requirements. The board had approached Khausar, an external consultant. Khausar was particularly keen to talk to Adam, the head of the audit committee. Adam explained that because SADA is a water supply company, he considered it important that all of the members of the audit committee are professional water engineers so that they fully understand the industry and its technical challenges. All three members of the audit committee are non-executive directors and all were recently retired members of the SADA executive board. When Khausar asked about the relationship with external auditors, Adam said that they had an excellent relationship, saying that this is because the external audit practice was run by the chairman's son-in-law. 1 Pag Required: (a) State THREE (3) general roles of audit committee. (6) Based on the case above, criticise SADA's audit committee practices. (c) Explain THREE (3) reasons why the audit committee is responsible for overseeing the internal audit function

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