Your friend is the CEO of Alba Defence Ltd. Alba Defence Ltd is exploring options to list on the UK stock exchange and is enquiring about corporate governance requirements. Explain the requirements under the UK Corporate Governance code for FTSE 100 companies. How do external auditors contribute to good corporate governance? Question 3 Three items that contribute to a high quality audit include the calculation of materiality; the appropriate sampling of account balances at year end; and the quality of evidence obtained during the audit. Explain and analyse the role of these concepts over the course of the audit process. With these in mind, comment on the 'Skills, competencies and the sustainability of the modern audit' report (ICAS \& FRC 2016) Question 4 To what extent should auditors should be responsible for the prevention, detection and reporting of fraud? Explain the provisions of ISA 240, discussing how big data and analytics may contribute to the ability of auditors to respond to fraud risk. Question 5 In 'Financial Crisis and the Silence of the Auditors' Prem Sikka observes: The claims of [the audit profession's] expertise are frequently punctured by unexpected corporate collapses, frauds, and failures. Such events fuel the suspicions that auditors lack the requisite independence, expertise and incentives to construct the promised 'true' and 'fair' account of corporate affairs. (Sikka, 2009, p868) Assess the observations made by Sikka concerning the auditor's independence and incentives to opine on the truth and fairness of a corporation's financial statements. State and explain whether you agree with Sikka's analysis