PwC has resigned as external auditor of Oceana because of a "strained" relationship with the company, and a lack of

transparent communication with the board, amid a tumultuous period at the troubled fisheries and logistics group.

At the last annual general meeting, shareholders holding $38\%$ of Oceana's shares voted against retaining PwC as the

group$$s auditors. Oceana was meant to consult with shareholders on the reappointment of PwC on Monday, but instead

announced on the day that PwC had resigned.

"Shareholders are now advised that late afternoon, Friday $(...)$ PwC resigned as auditors of the group with immediate effect

in respect of the audit of the financial year ending September $2022."$

Oceana said PwC said this was "due to their assessment of significant doubt as to whether there was objective and

transparent communication between the board and PwC given the strained relationship, which they assert constituted a

significant impairment of their independence."

Oceana was looking at alternatives to PwC$,$ and discussions with another of the big four auditing firms were progressing.

"The company is confident that it will be able to appoint new auditors within the required $40$ business days."

Monday$$s meeting will still go ahead in order to provide shareholders a chance to engage with Oceana$$s audit committee.

Oceana owns canned fish brand Lucky Star and also has a presence in other global markets where it sells fishmeal, fish

oil and fish. It also owns a logistics company specialising in cold storage and transport of products such as fish, fruit and

vegetables, poultry and meat.

The company delayed the publication of its financial results for the year$-$end September $2021$ several times. That JSE

previously warned that the company's listing would be suspended or removed if it didn't submit its annual report.

The delay of its results was due to two accounting issues. The first concerns the accounting treatment of the group$$s $25\%$

shareholding in New Orleans$-$based company Westbank Fishing. A whistleblower raised concerns about the treatment,

which was investigated by ENSafrica. A preliminary probe found no evidence of "fraud, misappropriation or loss of funds

or management of override of controls arising from any of the matters raised".

Secondly, PwC raised concerns about the dating of signatures on an internal document relating to a $$4$ million insurance

claim that was paid out to Oceana. The auditors were concerned whether the claim should have been recognised in the

previous financial year.

Chief financial officer Hajra Karrim was suspended in February, and CEO Imran Soomra resigned soon after that. Company

secretary Adela Fortune also later left the company.

Oceana previously said Soomra$$s conduct was being probed in order $"$to deal with certain of the matters which related to

the CEO$$s conduct and which had been investigated or arose during the investigations conducted by ENSafrica Forensics". Consider the following facts about Oceana as at $01$ March $2023$

$$ Listed on the Johannesburg stock exchange and is based in South Africa

$$ Financial year starts on $01$ March of every year.

$$ Employs $120$ workers at their factory including management and have no other employees on their books at end of

February $2023$

$15$ contractors were appointed starting in August $2022$ & ends on the $15$ March $2023$

$$ The annual revenue of the company was R$22\mathrm{.}5$ million.

$$ Took out a business loan of R$20$ million as a long$-$term loan in February $2022$ for a plant expansion project

$$ The company plans to onboard another $10$ employees starting on the $01$ March $2023$

$$ The company has $80$ shareholders but $20$ shareholders of them sold their shares on the $25$th of Feb $2023.10$

shares were purchased by existing shareholders and the remainder were purchased by $30$ new shareholders. All

of these took place on the same day.

$$ The Annual Financial Statement was compiled by an outsourced party as it has been for the last $10$ years. $3\mathrm{.}1$ Calculate the Oceana$$s Public Interest Score as at the financial year ending $2022$ based on the facts presented

above using the Companies Act No$.71$ of $2008($New Companies Act$)$ commenced on $1$ May $2011?(15)$

Students must show how the score has been calculated.

$3\mathrm{.}2$ Does Oceana have to undertake an audit of its Annual Financial Statement per the Companies Act No$.71$ of $2008$

$($New Companies Act$)$ commenced on $1$ May $2011?(10)$

Justify your respons