Ambunda designs and manufactures luxury outdoor furnitures. It is not a listed company, but its board has recently decided that it would like to improve its corporate governance in order to apply best practice. Ambunda's shares are held equally by six shareholders, four of whom are also executive directors. The remaining two shareholders are not involved with Ambunda, other than as shareholders. Ambunda has an internal audit department which is managed by Adrian Shilongo, the chief internal auditor. Adrian frequently comments that Ambunda's board does not understand his reports and does not provide sufficient support for his department and for the company's internal control systems. DWK & Co, Ambunda's external auditors, have also expressed concern in this area. Adrian has submitted a proposal to the board to establish an audit committee, and this is currently under consideration. The proposed membership of the audit committee is: . Adrian Shilongo (chief internal auditor) Penny Amupanda (existing executive director with some financial expertise) Sharon Apindi (proposed new non-executive director) Fredrick Amukungu (proposed new non-executive director) The board is also considering a significant expansion of the company. However, the company's bank is concerned by the standard of financial reporting as Ambunda's finance director recently left the company. The board is delaying providing the bank with financial information until a new finance director has been appointed. As part of its commitment to the effectiveness of the external audit process, the chair of Ambunda's audit committee, Leslie Schiff, is keen to ensure that the external audit makes use of the latest auditing techniques. She has heard about data analytics routines but is unsure exactly what they entail. Once established, the audit committee will have many objectives. Which of the following does NOT form part of the audit committee's objectives? a. Appointing the external auditor O b. Monitoring the independence of the external auditor O c. Safeguarding the privacy of whistleblowers O d. Implementing a policy on the supply of non-audit services by the external auditor In relation to the proposed membership of the audit committee, state which of the proposed directors should be included in the audit committee Proposed member a) Adrian Shilongo b) Penny Amupanda c) Sharon Apindi d) Fredrick Amukungu O a. b&c O b. a only O c. c only O d. a &b O e. b only Ofc&d g. a&d h. d only i. all of them j. b&d k. none of them Leave a message Which of the following statements best describes why having an audit committee could help Ambunda raise additional finance by addressing the concerns of the bank? O a. The audit committee will have at least one member who has relevant financial experience. This person will be able to stand in as Ambunda's finance director before a new finance director is appointed. O b. The audit committee will review all the available evidence to substantiate information in financial reporting, thus improving the credibility of the financial statements. O c. The independent non-executive members of the audit committee can provide guarantees to the bank concerning Ambunda's financial viability Od. The audit committee will have at least one member who has relevant financial experience, so that they can monitor the integrity of the financial statements. The following statements concern the auditor's use of data analytics routines. Which of the statements or statement is true a) A key drawback of data analytics software is that it is difficult to tailor to each particular audit client b) Data analytics routines enable auditors to examine complex data using simple visualisation techniques c) Although powerful, data analytics routines must be applied to strictly limited quantities of data so as to extrapolate correctly from a sample O a. b&c O b. none of them O c. all of them O d. b only O e. a &c f.a only O g. a &b Oh. conly Ambunda designs and manufactures luxury outdoor furnitures. It is not a listed company, but its board has recently decided that it would like to improve its corporate governance in order to apply best practice. Ambunda's shares are held equally by six shareholders, four of whom are also executive directors. The remaining two shareholders are not involved with Ambunda, other than as shareholders. Ambunda has an internal audit department which is managed by Adrian Shilongo, the chief internal auditor. Adrian frequently comments that Ambunda's board does not understand his reports and does not provide sufficient support for his department and for the company's internal control systems. DWK & Co, Ambunda's external auditors, have also expressed concern in this area. Adrian has submitted a proposal to the board to establish an audit committee, and this is currently under consideration. The proposed membership of the audit committee is: . Adrian Shilongo (chief internal auditor) Penny Amupanda (existing executive director with some financial expertise) Sharon Apindi (proposed new non-executive director) Fredrick Amukungu (proposed new non-executive director) The board is also considering a significant expansion of the company. However, the company's bank is concerned by the standard of financial reporting as Ambunda's finance director recently left the company. The board is delaying providing the bank with financial information until a new finance director has been appointed. As part of its commitment to the effectiveness of the external audit process, the chair of Ambunda's audit committee, Leslie Schiff, is keen to ensure that the external audit makes use of the latest auditing techniques. She has heard about data analytics routines but is unsure exactly what they entail. Once established, the audit committee will have many objectives. Which of the following does NOT form part of the audit committee's objectives? a. Appointing the external auditor O b. Monitoring the independence of the external auditor O c. Safeguarding the privacy of whistleblowers O d. Implementing a policy on the supply of non-audit services by the external auditor In relation to the proposed membership of the audit committee, state which of the proposed directors should be included in the audit committee Proposed member a) Adrian Shilongo b) Penny Amupanda c) Sharon Apindi d) Fredrick Amukungu O a. b&c O b. a only O c. c only O d. a &b O e. b only Ofc&d g. a&d h. d only i. all of them j. b&d k. none of them Leave a message Which of the following statements best describes why having an audit committee could help Ambunda raise additional finance by addressing the concerns of the bank? O a. The audit committee will have at least one member who has relevant financial experience. This person will be able to stand in as Ambunda's finance director before a new finance director is appointed. O b. The audit committee will review all the available evidence to substantiate information in financial reporting, thus improving the credibility of the financial statements. O c. The independent non-executive members of the audit committee can provide guarantees to the bank concerning Ambunda's financial viability Od. The audit committee will have at least one member who has relevant financial experience, so that they can monitor the integrity of the financial statements. The following statements concern the auditor's use of data analytics routines. Which of the statements or statement is true a) A key drawback of data analytics software is that it is difficult to tailor to each particular audit client b) Data analytics routines enable auditors to examine complex data using simple visualisation techniques c) Although powerful, data analytics routines must be applied to strictly limited quantities of data so as to extrapolate correctly from a sample O a. b&c O b. none of them O c. all of them O d. b only O e. a &c f.a only O g. a &b Oh. conly