Question 1 There is both confusion and a gap between the reality and the expectations of the performance of directors and auditors in respect to material fraud.

Required: Discuss the above statement and explain the role of directors and auditors with respect to material fraud.

Question 2 Reference is made to the Revised 2021-2022 Fiji National Budget announced on 24 March 2022. The Government accessed Phase two of the COVID19 Crisis Response Emergency Support Loan from JICA JPY10 billion (FJ$176.8 million) at concessional terms, with a 15year repayment period inclusive of a 4 year grace period amounting to the period at 0.01 percent interest rate. The first phase of the program also amounted to JPY10 billion (FJ$187.4 million) and was accessed in FY2020 year grace As at 2021. Total Expenditure in the Revised Budget is estimated to be $3.72 billion and Total Revenue is $2.25 billion. The total deficit will be $1.46 billion. Debt is projected to reach 88.6 percent by the end of this fiscal year and based on the projected economic recovery and planned deficit reduction, the Debt to GDP ratio is expected to come down to below 80% in the next 3 years.

Required: Assume your role as an Economic Advisor to the Fijian government,

(i) Explain the relevance of JICA concessional loan facilities to the Fijian economy.

(ii) Should government explore more of such facilities in coming years, Why or why not

(iii) Suggest one alternative to such facilities.

(iv) Suggest two strategies to achieve the desired Debt to GDP ratio in the next 3 years. (500-word limit)