QUESTION 5 (20 Marks) Whilst completing your training contract, you spent many hours on corporate governance work, and have become quite knowledgeable on the various aspects thereof. A family friend who is the chief executive officer of Indigo (Pty) Ltd, a large manufacturing company and one of your firms audit clients, is considering establishing an audit committee and has asked you around informally to give him a better insight into audit committees. You are not a member of Indigo (Pty) Ltd.'s audit team. During the discussion he posed the following questions, You are required to respond to each of the below questions. 5.1 Will it be my duty to appoint the audit committee and to be the chairman of the committee? (3 marks) 5.2 What exactly is an audit committee and is it any different to our internal audit department? (4 marks) 5.3 What should the composition of the audit committee be assuming that we would want to comply with the requirements of King IV? (4 marks) 5.4 Can you give me four benefits of having an audit committee and are there any disadvantages? (5 marks) 5.5 How can we, as a company, ensure that we have a successful audit committee? (4 marks) END OF PAPER