Question 4 (b) (GOVERNANCE) South Africa has had its fair share of corporate governance failures financial and non- financial. In many such instances, one of the questions that inevitably arise pertains to the role of the institution's audit committee and whether this committee had failed to discharge its duties.

a) What are the duties and functions of an Audit committee? (14)

b) Mention and explain any two factors which you believe influence the effectiveness of audit committees (6)