Read the following scenario and then answer the questions that follow: When AIMC, a well-known agricultural implement and machinery company, acquired AFC, an agricultural finance company, they were very happy because when examining the financial statements of AFC, the company seemed to be doing well financially. The challenge after they had paid the owners to fully acquire AFC and the company ownership transferred to AIMC, in a closer look at the financial statements, was that it became clear that AFC had exaggerated their current period earnings on the income statement by artificially inflating revenue and gains, and by deflating current period expenses. The governing body and the management of AFC had worked together in committing accounting fraud by manipulating financial statements and this made AFC to look like a profitable company. It also allowed certain executives compensation that relies on certain financial performance metrics being met. This means managers of AFC had "cooked the books in order to qualify for such compensation. In another shocking revelation, it was found out that some board members or governing body members of the organisation worked for both of these companies. Almost all the board members from both companies are experts in health, education, and public administration. Source: The primary lecturer, 2023 2.1 Based on this scenario, critically discuss with relevant examples how the AFC management failed in their agency duties. (4) Demonstrate through the use of relevant examples from the scenario how the board of directors of AFC caused challenges for the company. (8) Read the following scenario and then answer the question that follow: 2.2