Question $7$

Study the scenario below and answer the questions that follow:

Excited Auditors Inc

You have recently joined a medium$-$sized audit firm as an audit manager. The firm is called Excited Auditors Inc. $($hereafter EA$).$ Some of its customers include small, listed companies on the Johannesburg Stock Exchange $($JSE$).$ EA has offices in Johannesburg and Cape Town only.

You started on planning the audit of your new client $-$ IrriS Ltd$.$ IrriS Ltd is a group of companies which manufacture and distribute irrigation system components for residential and commercial use. IrriS Ltd is listed on the JSE and has a $30$ September $2022$ financial year$-$end audit. The group structure is as follows:

IrriS Ltd: Holding company.

SprinklerCo cc: $100\%$ owned by IrriS Ltd

Pipe $($Pty$)$ Ltd: $80\%$ owned by IrriS Ltd

EXTRACT FROM THE INTEGRATED REPORT OF IRRIS LTD FOR THE FINANCIAL YEAR ENDED $30$ SEPTEMBER $2022$

$\backslash$table$[[\backslash$table$[[$Audit Committee$],[$Member$],[($Note: You can assume$],[$that this extract includes all$],[$the responsibilities of the$],[$Audit Committee of IrriS$],[$Ltd$)]],$Qualification,$\backslash$table$[[$Attendance$],[$Meeting held on$],[30$ September$],[2022]]],[\backslash$table$[[$P Motlhabe CA$($SA$)-],[$Chairperson of the board$],[$and the audit committee$]],\backslash$table$[[$P Mohlabe is a non$-$executive director and$],[$the financial director at Blues $($Pty$)$ Ltd$.],[$Blues $($Pty$)$ Ltd is the major supplier of$],[$plastic to IrriS Ltd$,$ which they use in their$]],$Yes$]]$

$\backslash$table$[[,\backslash$table$[[$manufacturing process of pipes and$],[$sprinklers for the irrigation systems.$]],],[$S Grays,S Grays is the financial director of IrriS Ltd$.,$Yes$],[$T Motlhoko,$\backslash$table$[[$T Motlhoko is an independent nonexecutive$],[$director$.$ T Motlhoko obtained his agriculture$],[$degree at the University of the Free State in$],[2019$ and has been a board member and$],[$member of the audit committee since his$],[$appointment in January $2018.]],$Yes$],[$K Juewels,$\backslash$table$[[$K Juewels is an attorney specialising in$],[$contractual law. K Juewels is not a board$],[$member of IrriS Ltd but serves on the audit$],[$committee as a personal favour to the Chief$],[$Executive Officer.$]],]]$

The audit committee performs its duties in terms of the decisions of the chairperson of the committee. Based on informal discussions with the rest of the audit committee members, the chairperson of the audit committee determines the work that should be done by the internal audit department. The audit committee is satisfied that the Chief Audit Executive, K Mbatha, is knowledgeable and is performing his duties. The audit committee does not accept any responsibility in terms of Integrated Reporting as the board of directors handles this matter. The audit committee has no other responsibilities other than those reported on in the integrated report.

$.$

Source: Tshite B$,2019$

$7\mathrm{.}1$ Identify and explain the role of a company secretary as stipulated in the King IV Code.

$(12$ Marks$)$