he nance director of GTZ Ltd is responsible for the preparation of a detailed non-current assets budget (capital budget), which is based on a ve-year strategic plan that was recently approved by the whole board of directors after consultation with the audit committee. The capital budget, is review by the audit committee and then tabled for discussion in the full board.However, the board members are at liberty to propose potential suppliers of the fixed assets.In the previous year, this practice resulted in procurement of unnecessary furniture and computer which are still idle in the stores.

Required

Discuss the principles of corporate governance being violated in the above case (4 marks)

Discuss the responsibility of the audit committee in the above case. (3 marks)

Highlight the possible consequences of the corporate governances' lapses identified in GTZ ltd (3 marks)