The accountant's role in corporate govemance and in sustainability reporting is part of accountability. The 'accountants and auditors play important role in the governance process fo ensure good corporate govemance Is achleved. In sustainability reporting, they play important roles for a better evaluation of potential serious economic consequences If economic, environmental and social ssues are mismanaged.

Part A: Razak Ahmad is a chief executive of Urban Bank. Razak uthorises a foan fo Farby Properties secured on fhe land Itis about fo purchase. Farby Properles has littie money of ifs own. Farby Properies subdivides fhe land and builds houses on them. It offers buyers a house and finance package under which Urban Bank provides fhe house loans Up 10 97% of the house price even fo Coupies with poor credit ratings. This allows Farby Properies fo ask for higher prices for the houses. Farby Properties appoints Galore Homes as the seling agent who kindly provides buyers with the free services of a solicitor to hande all legal aspects including the conveyancing. Most of the profits from the developments are paid to Galore Homes as commissions. Razak Ahmad's wife has a 20% interest in Galore Homes.

Required: Are these corporate governance failures? Discuss.

Some organizations undertake sustainabily reporfing and has an indepenaent party to provide assurance on such reporting. The undertaking of sustainabilly assurance in most countries is voluntary.

Required: Provide reasons as to why you think organizations undertake independent assurance on sustainability reporting?