QUESTION 5 (20 Marks)

In todays complex and rapidly changing technology environment, it is important to master the right techniques which could be used across enterprises and across various technology platforms. Typical of an IT environment, are the speed of processing, large capacity of storage, lack of the paper-based trails, the radically different way of information processing, the ease of information access, internal controls being imbedded and the ever-present risk of failure of IT and loss of data. As a newly graduated techno savvy auditor, you must write a Report to Mrs.Thobile the Accounting Director and convince her of the following

Factors that influence your decision to use CAAT

together with the advantages and disadvantages of using CAAT

You must present examples to further strengthen your argument.

QUESTION 6 (20 Marks)

The retirement of Long4Life chief executive Brian Joffe, only to move to the chairpersons office, is the latest such transition in South Africas business sector that has raised concerns about the blurring of lines to the detriment of corporategovernance integrity. There are risks when this cooling-off period is not observed, especially when there is a strong chief executive who could have an influence on the board, according to advocate Annamarie van der Merwe, executive chair of the FluidRock Governance Group and, until recently, a longstanding member of the King Committee on Corporate Governance. Commenting on the move by Long4Lifes Joffe, she said: Is this the right decision with Brian? I do not know and that is the job of the board. They were comfortable, at the end of the day, with that decision.

From the above extract do you agree with the suitability of Mr Joffe as Chairman of the Board from a Good Governance and King 1V perspective? Present your argument and align your discussion to the Correct Principle/s of The King 1V Report. Include the recommended Practices