You are currently employed as an audit senior at For You Auditors and have been assigned to the audit engagement of Direct Access (Pty) Ltd for 2022 (hereafter Direct). Direct has a February year-end.

The Board of Directors of Direct believes in maintaining exceptional standards of corporate governance, integrity, and compliance with King IV principles. To perform the tasks assigned to you in an effective and efficient manner, you need to gain a thorough understanding of Directs business.

The information gathered during your first week performing the audit engagement has been provided are as follow:

Direct has 4 shareholders, namely:

Server (Pty) Ltd 45%

Mr L Smith 30%

Mr R Loodt 15%

Miss T Beck 10%

Mr R Loodt	Independent, Non-Executive Director. Member of the social and ethics committee. He has served as a Non-Executive Director since the inception of the company in 2003. Mr Loodt has never been employed by Direct, and the board has never reviewed his independence.
Mr L Smith	Non-Executive Director and Chairman of the board. Chairman of the remuneration committee. Member of the nominations committee. Mr Smith was the Chief Executive Officer (CEO) of Direct until July 2018 and was appointed as the Chairman of the board of directors by the shareholders on 1 March 2019.
Ms J Buys	Independent, Non-Executive Director. Member of the risk committee
Mr D Swarts	Independent, Non-Executive Director. Chairman of the risk committee. Member of the audit committee.
Ms S Louw	Non-Executive Director. Chairman of the nominations committee.
Mr J Ford	Non-Executive Director.
Mr B Ruiters	Non-Executive Director. Chairman of the social and ethics committee. Member of the risk committee
Mr A Reed	Non-Executive Director.
Mr D Arendse	Non-Executive Director. Member of the nominations committee. Member of the social and ethics committee
Mr D Adams CA (SA)	Financial Director. Chairman of the audit committee. Member of the remuneration committee.
Mr B Jonker	Chief Executive Officer (CEO). Member of the nominations committee
Mr B Carter	Operations Director. Member of the nominations committee. Member of the remuneration committee.

Performance measures of the Board:

The performance review of the Board of Directors as a whole and of the individual directors are conducted on an annual basis as follows:

Mr. Smiths performance was assessed at one of the Directors meetings. The evaluation was performed by the Directors, under the guidance of the Financial Director, Mr Adams. The Board of Directors performance evaluation was also conducted by Mr Adams.

Required:

Discuss any concerns you may have regarding Direct Access (Pty) Ltd.s application of the recommended practices contained in the King IV Report.