Question 19 of 30 2 Points The following information concerns individuals on Protea's Board of Directors, as at 29 February 2020: Director Notes Position Mr S Mr Bokkie owns 15% of the equity interest in Protea. Chairperson of the Board Bokkie He has also served as the Chairperson of the Audit Committee of Protea for a number of years. Mr F de Mr de Klerk is the CEO of one of Protea's significant suppliers. Non-executive director Klerk Ms C Kolbe Ms Kolbe serves on the boards of ten other companies from various Non-executive director industry sectors. Select the alternative that correctly indicate the reason why these particular directors, listed in 1 to 4 below, are not independent, in terms of the King IV Report: 1. Mr Bokkie is not independent, because he holds a 15% equity interest in Protea. 2. Mr De Klerk is not independent, since he is the CEO of one of Protea's significant suppliers. 3. Ms Kolbe serves on the boards of ten other companies from various industry sectors and therefore she is not independent 4. Mr Bokkie is not independent, because he forms part of the audit committee. Choose the correct answer from the options given below: A. 3 and 4 B. 1 and 2 O C. 1,2,3 and 4 OD. 1,2 and 4 Reset Selection Question 20 of 30 2 Points The company has very good internal control, which addresses and is based on the generally accepted components internal control, namely *the control environment the risk assessment process the information system - relevant to financial reporting * control activities monitoring of controls The following piece of information relates to the revenue and receipts cycle: All incoming sales orders in the revenue and receipts cycle are directed to the telesales order clerks. A queuing system for telesales orders will direct the call to the next available clerk Identify the component of internal control to which the above information relates: A. The information system B. Control activities C. The control environment D. The risk assessment process Question 21 of 30 2 Points Protea Limited (Protea) is the largest distributor of consumer goods, general merchandise, home improvement equipment and is a wholesaler of basic foods in South Africa. Protea's governance structure consists of the board of directors, assisted by four committees, namely the audit, remuneration, risk governance and nominations committees and an internal audit section. The chairperson of the board (CEO) is Mr S Bokkie. Mr Bokkie owns 15% of the equity interest in Protea. He has also served as the Chairperson of the Audit Committee Protea for a number of years. Who should, in terms of the King IV report, be responsible for the assessment of the effectiveness of risk management Protea? A. Risk Governance Committee OB. Internal audit section OC. The governing body OD. Mr Bokkie, the CEO Question 22 of 30 2 Points A company's accounting systems are all computerised and located on a local area network. The following control practice is in place at the company Employees who work in the revenue and receipts cycle are sent regularly on training courses relating to their functions within the cycle, e g. when software is updated. Select the correct alternative that indicates whether the practice is an application or general control, and also indicate the category of internal control the practice relates to. OA. General control - system development OB. Application control - control activity C. Application control - control environment OD. General control - control environment Reset Selection
