1. You are the audit manager of IKA & Co, a medium sized firm of accountants. Your firm has just been asked for assistance from Jumper & Co, a firm of accountants in an adjacent country. This country has just introduced a requirement for entities to conform to the internationally recognized codes on corporate governance and Jumper & Co has a number of clients where the codes are not being followed. One example of this, from ICGC, a listed company, is shown below. As your country already has appropriate corporate governance codes-in place, Jumper & Co have asked for your advice regarding the changes necessary in ICGC to achieve appropriate compliance with corperate governance codes. ICGC Mr. Sheppard is the Chief Executive Officer and board chairman of ICGC. He appoints and maintains a board of five executive and two non-executive directors. While the board sets performance targets for the senior managers in the company, no formal targets are set and no review of board policies is carried out. Board salaries are set and paid by Mr. Sheppard based on his assessment of all the board members, including himself, and not their actual performance. Internal controls in the company are monitored by the senior accountant, although detailed review is assumed to be carried out by the external auditors; ICGC does not have an internal audit department. Annual financial statements are produced, providing detailed information on past performance. Required i. Describe five corporate governance weaknesses faced by ICGC. (5 marks) ii. Provide recommendations to address each weakness, to ensure compliance with corporate governance principles