AUE2602
Assignment 2A Semester 1 2024
Detailed Solutions, References & Explanations
Unique number: 881128
Due Date: 4 April 2024
PART A
QUESTION 1 (2 ANSWERS PROVIDED)
Concern Reason
Lack of Independence The King IV Report mandates that the audit
committee should comprise solely of independent
non-executive directors. In the given scenario, only
Mrs. Colt is identified as an independent non-
executive director. Mr. Appleton, being the marketing
director and the chairperson of the board, and Miss
Marks, being the financial director, do not meet the
independence criteria. This composition undermines
the audit committee’s autonomy and objectivity,
thereby not aligning with the recommendations of the
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