QUESTION 3 [20 MARKS]

3.1 Company boards often have committees as part of good governance practices. One of the important committees is the audit committee which works and cooperates with external auditors. Briefly discuss how an audit committee can improve the efficacy of the work conducted by external auditors. (10)

3.2 Briefly outline some of the challenges that may be encountered in trying to ensure the independence of the audit committee members. (10)

Include Introduction, Body and Conclusion.