The Australian Securities Exchange (ASX) Corporate Governance Councils Corporate governance principles and recommendations with 2010 amendments, provides some important guidelines for best practice in corporate governance for all companies, including the importance of the Audit Committee.

With reference to these principles, discuss why they are relevant when planning the audit and how the adoption of all eight ASX corporate governance principles by the company being audited will affect the auditors risk assessment. Also, discuss the role of the Audit Committee. (7 marks)