SECTION A: All questions in this section are compulsory and must be answered. QUESTION ONE ZMW Limited is a charitable organisation established ten years ago. Its stated purpose is to help individuals and families with social problems and related issues." Its work, in a large city with people from many countries and backgrounds, involves advising, counselling, giving practical support to service users (the people who come for help). Over the years it has been operating, ZMW Ltd. has realised that the best outcomes are achieved when the staff member understands and sympathises with the service users' social norms, ethical and cultural beliefs. 40% of ZMW Ltd.'s funding comes from local government. This means that ZMW Ltd has to account for its use of that portion of its funding and comply with several rules imposed by local government. One of these rules concerns demonstrating appropriate diversity amongst the managers of services such as those delivered by ZMW. It requires the charity management team to involve the widest feasible range of people and to reflect the demographic make-up of the community. ZMW has recently had to replace a number of executive and non-executive members of its board. The external auditor suggested that setting up a nominations committee would help in these board appointments. The CEO, Marian Ngogo, has always stressed that all directors should share the ethical values of ZMW and agree to take reduced rewards because, 'every dollar we pay a director is a dollar less we are spending on service delivery. She stressed that the culture in a charity was very different from a commercial ("for profit) business and that staff and directors must share the ethical stance of ZMW and had to accept a different approach to social responsibility if they joined. The ZMW Board of Directors are considering establishing an internal audit unit after realising that there is presently none. Further, the position of risk officer will be restructured to be Director - Risk Management and Control. Required: (a) Using a business organisation of your choice, with practical examples, explain the roles of a Risk Committee in risk management and Control, and its contribution to the corporate's financial performance. (20 marks) (b) Using a business organisation of your choice, with practical examples, discuss the key roles and functions of the Audit Committee in respect of internal controls its contribution to the corporate's financial performance. (20 marks) (Total: 40 marks)