Audit and internal review

QUESTION 1 Mr. Benedict Max-Kattah Debrah is the Founder, Chief Executive Officer and Board Chairman of Delmax Company Ltd. He single-handedly appointed a board of five executive and two non-executive directors. No formal performance targets are set for the senior managers in the company and no review of board policies is carried out. Mr. Benedict Max-Kattah Debrah is the one who sets Board salaries 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. Delmax Company Ltd. does not have an internal audit department. Required: Describe FIVE corporate governance weaknesses faced by Delmax Company Ltd. which do not comply with corporate governance principles and for each weakness recommend a solution. (15 marks)