Auditing
TOPICS COVERED: The Companies Act
The King Code on Corporate Governance IV
SAICA Code of Professional Conduct
The Auditing Professions Act
AUE Integrated Question Test 4 Reading Time: 12 Minutes
Background Information:
You are the audit partner at CTA Inc. (herein referred to as CTA) a firm of registered
auditors. CTA has been the auditors of Com Rads Limited (herein referred to as
COM) since its incorporation.
You have been the partner in charge of the audit of COM for the past five years.
COM has a 31 March year end.
Prior to the commencement of the current audit, you managed to secure the same
audit team that performed the audit of COM in the previous year.
Understanding the entity:
You set up a meeting with Carol Woesman (Financial Director) on 28 March 2019,
to discuss the changes that took place within the entity during the current period.
Carol noted that there were no significant changes in the ownership structures of
COM:
Gift Makola – 56%
Bruce Ford – 26%
Various minority shareholders – 15%
Unissued – 3%
, Carol noted that the board of directors of COM remained the same:
Bob Mandla – Chief executive officer
Hussin Blot CA (SA) – Chairman and independent non-executive director
Carol Woesman – Financial Director
Elenor Mayor – Lead Independent non-executive director
Caster Semena CA (SA) – Independent non-executive director
Upon further discussions with Carol, you were informed that there had been no
changes in the board committees or membership thereof. COM has the following
committees:
Audit committee – 3 Independent non-executive directors
Risk committee – 2 Executive directors and 2 independent non-executive directors
Remuneration committee – 2 Independent non-executive directors, and 1
executive director
Nomination committee - 2 Independent non-executive directors, and 1 executive
director
Social and ethics committee - 1 Executive directors and 2 independent non-
executive directors
You concluded the meeting with Carol with a request for all minutes of the board
of directors meetings concluded during the 2019 financial year. You have included
the minutes of the last meeting for the year in working paper WP1
Entity Name: Com Rads Ltd Year end: 31 March 2019 W/P 1
Prepared by: R Clark Date 1 April 2019
Subject: Board of directors resolutions during 2019
TOPICS COVERED: The Companies Act
The King Code on Corporate Governance IV
SAICA Code of Professional Conduct
The Auditing Professions Act
AUE Integrated Question Test 4 Reading Time: 12 Minutes
Background Information:
You are the audit partner at CTA Inc. (herein referred to as CTA) a firm of registered
auditors. CTA has been the auditors of Com Rads Limited (herein referred to as
COM) since its incorporation.
You have been the partner in charge of the audit of COM for the past five years.
COM has a 31 March year end.
Prior to the commencement of the current audit, you managed to secure the same
audit team that performed the audit of COM in the previous year.
Understanding the entity:
You set up a meeting with Carol Woesman (Financial Director) on 28 March 2019,
to discuss the changes that took place within the entity during the current period.
Carol noted that there were no significant changes in the ownership structures of
COM:
Gift Makola – 56%
Bruce Ford – 26%
Various minority shareholders – 15%
Unissued – 3%
, Carol noted that the board of directors of COM remained the same:
Bob Mandla – Chief executive officer
Hussin Blot CA (SA) – Chairman and independent non-executive director
Carol Woesman – Financial Director
Elenor Mayor – Lead Independent non-executive director
Caster Semena CA (SA) – Independent non-executive director
Upon further discussions with Carol, you were informed that there had been no
changes in the board committees or membership thereof. COM has the following
committees:
Audit committee – 3 Independent non-executive directors
Risk committee – 2 Executive directors and 2 independent non-executive directors
Remuneration committee – 2 Independent non-executive directors, and 1
executive director
Nomination committee - 2 Independent non-executive directors, and 1 executive
director
Social and ethics committee - 1 Executive directors and 2 independent non-
executive directors
You concluded the meeting with Carol with a request for all minutes of the board
of directors meetings concluded during the 2019 financial year. You have included
the minutes of the last meeting for the year in working paper WP1
Entity Name: Com Rads Ltd Year end: 31 March 2019 W/P 1
Prepared by: R Clark Date 1 April 2019
Subject: Board of directors resolutions during 2019
