Hon. Eric Owusu is a well-known wealthy and influential politician. Bank AAB, a prominent bank in Ghana of which the state owns majority shares, has appointed him as its board chairperson. His first born, Mr. Ernest Owusu, happens to be the Finance Director of this same bank, a position he held four (4) years before his fathers appointment. Dr. Dania Mills, an intelligent Oxford trained financial, risk management expert, is the lead partner of Dania and Associate limited, a reputable auditing firm.

Dr Dania and her Firm Dania Associate Limited have been the external auditors of Bank AAB for the past seven (7) years, three (3) long years before Mr. Ernest Owusu her husband joined the bank. Mr. Joseph Addo a partner at Dania and Associate Limited owns Future Leaders International School, a school he financed with loans from Bank AAB.

Dr Dania has handed over an approved external audit report to her husband for his perusal before onward submission to the board chairman. Mr. Addo who has defaulted on his loan obligation to Bank AAB, also led the audit team. Prior to conducting the external audit, the Managing Director asked the internal auditor to step aside due to an alleged misconduct. Most of the internal audit staff were reshuffled to the accounts department and new members recruited three (3) months before the time of the audit.

Required:

As a Corporate Governance expert with a good understanding of best practices of corporate governance in both Public and Private companies, with specific examples from the case;

A) Establish in five (5) ways, with specific examples, how you will address issues raised in this case with regards to authorities, roles and responsibilities of directors. (5 Marks)

B) You have been informed that Dr Dania Mills has handed over an approved external audit report to her husband for his perusal before onward submission to the board chairman, how will you address this issue from the best practice point of view, regarding the role of external auditors, the audit committee function ad internal audit function in the bank. (5 Marks)