You are the senior trainee accountant on the audit of MNO Ltd, an information technology company...

    

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You are the senior trainee accountant on the audit of MNO Ltd, an information technology company listed on the JSE. You have been assigned to review whether MNO complies with the King IV Report on Corporate Governance for South Africa 2016, specifically with regard to the composition and function of the audit committee. The following information has been provided to you by the audit partner: MNO held one audit committee meeting during the financial year ended 28 February 2022. The audit committee consisted of three members: Miss Sizwe, Mr Carl and Mrs Garnet. Miss Sizwe was the human resources director and the chairperson of the board. Mr Carl was the financial director and a retired CA(SA). Mrs Garnett was an independent non-executive director with limited knowledge of IFRS, integrated reporting and internal controls. The position of chief executive auditor was vacant, and Mr Carl indicated that he would inform the audit committee that the board was in the process of appointing a chief audit executive. Mr Carl highlighted that the integrated reports for the previous two years were in process and that he would provide copies to the audit committee once they had been finalised and published. Two presentation marks will be awarded if the answer is presented in the following required format and for communication, logical reasoning and structure. Concern 1 mark each Max 6 Reason 1.5 marks each Max 9 REQUIRED Identify six (6) corporate governance concerns in terms of the King IV Report on Corporate Governance for South Africa 2016 regarding the audit committee as evident from the information above and give reasons for your answer. You are the senior trainee accountant on the audit of MNO Ltd, an information technology company listed on the JSE. You have been assigned to review whether MNO complies with the King IV Report on Corporate Governance for South Africa 2016, specifically with regard to the composition and function of the audit committee. The following information has been provided to you by the audit partner: MNO held one audit committee meeting during the financial year ended 28 February 2022. The audit committee consisted of three members: Miss Sizwe, Mr Carl and Mrs Garnet. Miss Sizwe was the human resources director and the chairperson of the board. Mr Carl was the financial director and a retired CA(SA). Mrs Garnett was an independent non-executive director with limited knowledge of IFRS, integrated reporting and internal controls. The position of chief executive auditor was vacant, and Mr Carl indicated that he would inform the audit committee that the board was in the process of appointing a chief audit executive. Mr Carl highlighted that the integrated reports for the previous two years were in process and that he would provide copies to the audit committee once they had been finalised and published. Two presentation marks will be awarded if the answer is presented in the following required format and for communication, logical reasoning and structure. Concern 1 mark each Max 6 Reason 1.5 marks each Max 9 REQUIRED Identify six (6) corporate governance concerns in terms of the King IV Report on Corporate Governance for South Africa 2016 regarding the audit committee as evident from the information above and give reasons for your answer.