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Question 18 (12 marks) Mark to review this question at the end of the exam Sarah Mayson is the newly appointed CEO for the Highlands

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Question 18 (12 marks) Mark to review this question at the end of the exam Sarah Mayson is the newly appointed CEO for the Highlands Community League (Highlands). After two months on the job, Highland's board chairperson (chair) resigned, and Sarah was appointed as chair in her place. Before taking her role at Highlands, Sarah was the COO at Magellan Inc. (Magellan) for 15 years. Magellan engaged your firm, Dewey, Cheetham, and Howe, Chartered Professional Accountants, to perform Magellan's annual audits. Joe Dewey has sent you, a CPA in training, the following email Dear CPA-in-training: Sarah Mayson is a long-time client and friend of mine. She has sent me her notes from her second Highlands Board of Directors meeting (her first as chair). Here are Sarah's notes: Highlands currently has 10 directors on its board, including me. Each director represents one of the neighbourhoods in the Highlands Community District. Whenever a director moves or quits their appointment, they are replaced with a member from the same neighbourhood. Before the former board chair left, she mentioned that whenever there is a special project board meeting, whether it is a fundraiser or meeting to discuss bylaw infractions, the whole board is required to meet. Often there are board members that attend but do not participate, particularly if they are not involved in the project or are unaffected by the bylaws violations. Overall, our board overall is great, with each member contributing in their own way, but these large meetings can be a drain. I recently saw the agenda for next month's meeting. It includes a line item to discuss the compensation for senior executives. When I accepted the role as Highland's CEO. I took a 20% pay cut, and I am looking forward to bringing up appropriate compensation at next month's board meeting. Based on this information, please respond to Sarah and advise her of the strengths and weaknesses of Highland's current governance structure. Regards J. Dewey Required: Prepare a memo for Sarah that addresses the strengths and weaknesses of Highland's governance structure. For each strength, clearly explain why it is a strength. For each weakness, clearly state why it is a weakness. Include recommendations to address the weaknesses identified

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