You are an auditor of Khambule Advertising $($Pty$)$ Ltd a family$-$owned advertising company based in Johannesburg. Khambule Advertising has been in the advertising business for many years and has recently bought Mashaba Media in order to have a broader presence in the media industry. They have also decided to list on the Johannesburg Stock Exchange $($JSE$).$ You were approached by Jabu Khambule to help them determine if their Audit committee composition and structure is in line with good governance. The composition of the Audit Committee of Khambule Advertising is as follows:

Name Job description Board role Committee role

Jabu Khambule $($founder$)$ Chief Executive Officer Chairman of the Board Chairman of the Audit Committee

Dali Khambule $($wife of Jabu$)$ Chief Financial Officer Member Audit Committee member

Sizile Nkuna CIA Head of Internal Audit department Non$-$executive board member Audit Committee member

Eddie Masha CA$($SA$)$ CEO of Mashaba Media Independent non$-$executive board member Audit Committee member

Sizwe Nxasana CA$($SA$)$ None Independent non$-$executive board member Audit Committee member

Themba Hlatshwayo Chief Risk officer Member Audit Committee member and risk committee member

You are required to:

$2\mathrm{.}1$ Clearly distinguish between the following

$2\mathrm{.}1\mathrm{.}1$ Executive directors, non$-$executive directors and independent non$-$executive directors $(5)$

$2\mathrm{.}2$ Advise Jabu Khambule and the board on the following:

$2\mathrm{.}2\mathrm{.}1$ Overall functions of the Audit Committee $(5)$

$2\mathrm{.}2\mathrm{.}2$ Functions in relation to internal auditors $(5)$

$2\mathrm{.}3$ With reference to the Audit Committee, identify instances were Khambule Advertising $($Pty$)$ Ltd is not in compliance with King IV and recommend remedial action. Your answer should be in a table format $`(10)$

Non$-$Compliance Remedial action $-$ what should be

$11$

$22$