Kaya Bhd is a company which is involved in oil and gas production, Butter bhd as the dominant shareholder, controls the selection and appointment of Kaya Bhd's executive directors including the Chief Executive Officer (CEO).

Kaya Bhd has gained public attention due to a project cost overrun scandal involving various malpractices. The internal auditor has issued report on the loss of RM 50 million to the company's audit committee. However, the CEO explained that the losses were insignificant. No further investigations were conducted although the company's external auditor has delayed signing off the accounts.

Kaya Bhd's board members were aware of the losses, but they relied on the CEO's explanation. Furthermore, none of the audit committee members have finance or accounting backgrounds and so they did not fully understand the company's finance statments.

(a) Dicuss the issues in Kaya berhad
(b) Did the board members execute their roles effectively? Justify your answer
(c) If you were one of the board members of Kaya Bhd, what should you do when you got to know about the issues in the company?