Study the scenario and complete the questions that follow: Books-Online Ltd Books-Online Ltd originated from a...

  

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Study the scenario and complete the questions that follow: Books-Online Ltd Books-Online Ltd originated from a book shop started by Mr Marx in 1929. Over the years, the one-man business grew into a public company and went into online retailing in 2019. As a result, the company has grown exponentially and Mr Marx's grandson, Carlos, has decided to list the company on the Johannesburg Stock Exchange (JSE). The current board of directors is represented in the following diagram: Carlos Marx Nina Optive Eric Lushan Charmain and Chief Executive Officer Non-executive director Non-executive director Siya Dhlamini Sally Louw Jerry Nkosi Chris Tops Hanjewa Cwakisa Director Marketing Director Sales Director Finance Director Distribution Director Human Resources Carlos Marx has asked for assistance in relation to corporate governance requirements that need to be adhered to as a result of the company's being listed on the JSE. He provided you with the following additional information: Nina Optive is Carlos Marx's sister and has extensive knowledge of online marketing. Eric Lushan joined the board of directors a year ago at the request of Chris Tops as an independent advisor about distribution in an online environment, serving on the board of directors of two other online retail outlets. Although Carlos Marx is not sure what an audit committee's function is, he formed one. Carlos Marx is the chair and two other directors serve on the committee, namely Hanjewa Cwakisa and Sally Louw. Although the two directors have no knowledge of finance or auditing, Carl Marx appointed them in order to show independence from the finance function of the company. 3.2 Assess the members of the audit committee set up by Books-Online Ltd, including who should be members and who should not be members. (18 Marks) Study the scenario and complete the questions that follow: Books-Online Ltd Books-Online Ltd originated from a book shop started by Mr Marx in 1929. Over the years, the one-man business grew into a public company and went into online retailing in 2019. As a result, the company has grown exponentially and Mr Marx's grandson, Carlos, has decided to list the company on the Johannesburg Stock Exchange (JSE). The current board of directors is represented in the following diagram: Carlos Marx Nina Optive Eric Lushan Charmain and Chief Executive Officer Non-executive director Non-executive director Siya Dhlamini Sally Louw Jerry Nkosi Chris Tops Hanjewa Cwakisa Director Marketing Director Sales Director Finance Director Distribution Director Human Resources Carlos Marx has asked for assistance in relation to corporate governance requirements that need to be adhered to as a result of the company's being listed on the JSE. He provided you with the following additional information: Nina Optive is Carlos Marx's sister and has extensive knowledge of online marketing. Eric Lushan joined the board of directors a year ago at the request of Chris Tops as an independent advisor about distribution in an online environment, serving on the board of directors of two other online retail outlets. Although Carlos Marx is not sure what an audit committee's function is, he formed one. Carlos Marx is the chair and two other directors serve on the committee, namely Hanjewa Cwakisa and Sally Louw. Although the two directors have no knowledge of finance or auditing, Carl Marx appointed them in order to show independence from the finance function of the company. 3.2 Assess the members of the audit committee set up by Books-Online Ltd, including who should be members and who should not be members. (18 Marks)

Answer rating: 100% (QA)

Solution 31 King IV requires that the audit committee as a whole have the necessary skill and experi... View the full answer