[Words Limit: Up to 400 words.]

1. a) During the Week 2 Interactive Tutorials, we discussed the role of an active board of directors audit committee from different aspects. In the light of that discussion, explain the importance of an active board of directors audit committee to an organisation. [3 Marks. Words Limit: Up to 200 words]

2. b) The given system flowchart elaborates the business activities involved in different departments, including (1) Sales Department, (2) Accounting Department, (3) Warehouse, (4) Shipping Department, and (5) Billing Department. The bottom part of this Figure indicates that the Sales Department sends the sales invoice to the Billing Department. Here, it is assumed that this sales invoice only contains non-financial information. For instance, the customer and quantity details. We have discussed the control weakness and the risk associated with these control weaknesses during the Week 4 interactive tutorials. Based on these control weaknesses and the associated risk, what types of frauds are possible in this business environment.

   [4 Marks. Word Limit: Up to 200 words]