Audit Committee - INFORMATION Two of the audit committee members of Yummyfoods have resigned and need to be replaced. The Nomination Committee has shortlisted the candidates below for the vacant audit committee positions. Mrs Zoe Selepe (CA)SA, (ACMA), CGMA CFO of a Non-Profit Organisation (NPO) with extensive background in the food industry Mr James Blond - A partner of the law firm that acts as legal advisors to the company Mrs Asmitha Kan - A shareholder who holds 3% of the companys shares Miss Zodwa Kumalo Former financial director of Yummyfoods Limited who resigned in the previous financial year

1.QUESTION

Briefly explain in terms of the recommendations of the Code of Corporate Governance on whether the candidates that have been shortlisted above are eligible for appointment to the audit committee?

Creditors Payments Controls Information Yummyfoods Limited pays its creditors by electronic funds transfer (EFT). There are three employees in senior roles that are authorised to process the payments. Two of them are required to process the EFT payment. One of the employees authorizes and the other one releases the payment file, both using unique passwords. The financial manager (who is part of the three signatories), carefully inspects the supporting documents prepared by the creditors clerk and signs off the payment file if he is satisfied with the information presented to him. The second employee also inspects the file and the supporting documents before releasing the payment, confirming that it was signed off by the financial manager. All the discrepancies are thoroughly investigated, and corrective measures are taken before payments are finalized.

2.QUESTION

2.Briefly comment on the control environment of the creditors payments controls based on the information given above?