AUE2602
EXAM PACK
, lOMoARcPSD|18222662
NAME AND SURNAME: MPUMELELO MBATHA
STUDENT NUMBER: 15592235
DATE: 27 MARCH 2025
AUE2602 ASSINGMENT 01.
QUESTION 01 CORPORATE GOVERNANCE.
a)
• In terms of the King IV the CEO of the board must not be a chairperson
and the CEO of Sell-Alot is not the chairperson, so they comply with
the King IV.
• In terms of King IV the board must comprise diversity of gender and
Sell-A lot has only 2 women and 6 men, so they don’t comply with the
King IV.
• In terms of the King IV the board must appoint a chairperson whose
independent and non-executive and Mr Simbane the chairperson
owns more than 5% of Sell-A lot which is 7% he is therefore not
independent, and they don’t comply with King IV.
• In terms of King IV the company must appoint a CFO, Sell-Alot has a
CFO Ms Gordons, so they comply with the King IV.
• In terms of King Iv the board must comprise of balance of power
majority must be non-executive of which majority must be
independent Sell-Alot has 4 non-executive and all 4 are not
independent so they don’t comply.
b)
• Mr Simbane is also the chairperson of the audit committee of which the King IV
states the chairperson of the board can not be a member of the audit committee
and him being the chairperson also makes him a member of the audit committee
he therefore does not comply with the King IV.
• In terms of the King IV Mr Simbane must be independent and not conflicted he is
therefore not independent as he owns more than 5% of Sell-Alot and is
conflicted since he is invested in the company, so they don’t comply with the
King IV.
• In terms of the King IV the chairperson must be appointed on an annual basis
and Mr Simbane has been the chairperson for 12 years, so they don’t comply
with the King IV.
, lOMoARcPSD|18222662
C)
• The audit committee must appoint a chairperson who is independent and non-
executive Mr simbane not independent as he owns more than 5% of the
company they don’t comply.
• The chairperson of the board must not be a member of the audit committee Mr
Simbane is a member, so they don’t comply.
• The audit committee must comprise of at least 3 members, and they don’t have
3 members except for Mr Simbane so they don’t comply.
• All members must be independent and non-executive, and their members are
not independent so they don’t comply.
1.2.1 Yes, it is UBUNTU, as they will build the school in Tsomo town and provide all the
textbooks without expecting anything in return.
1.2.2. It helps gain trust in the community and may help as an investment to the
company
1.3
1.4
Identification of example Components of control
1.an internal audit function is established 1.Risk assessment
an outsourced to an audit firm, the
internal audit reports back to the board
and audit committee.
2.In response to the governing body’s 2.Control environment
awareness of the importance of ethical
values
3.Sell-Alot places high reliance on 3.Control environment
employees
, lOMoARcPSD|18222662
ASSESSMENT 2
Corporate governance in Accountancy
AUE2602
Semester 2 2025
Department of Auditing
ASSESSMENT 2 : ESSAY-TYPE QUESTION
The assessment covers lessons 1 to 2.
UNIQUE ASSESSMENT NUMBER FOR THE SECOND SEMESTER: 639458
DATE OF SUBMISSION
First semester: 11 September 2025
EXAM PACK
, lOMoARcPSD|18222662
NAME AND SURNAME: MPUMELELO MBATHA
STUDENT NUMBER: 15592235
DATE: 27 MARCH 2025
AUE2602 ASSINGMENT 01.
QUESTION 01 CORPORATE GOVERNANCE.
a)
• In terms of the King IV the CEO of the board must not be a chairperson
and the CEO of Sell-Alot is not the chairperson, so they comply with
the King IV.
• In terms of King IV the board must comprise diversity of gender and
Sell-A lot has only 2 women and 6 men, so they don’t comply with the
King IV.
• In terms of the King IV the board must appoint a chairperson whose
independent and non-executive and Mr Simbane the chairperson
owns more than 5% of Sell-A lot which is 7% he is therefore not
independent, and they don’t comply with King IV.
• In terms of King IV the company must appoint a CFO, Sell-Alot has a
CFO Ms Gordons, so they comply with the King IV.
• In terms of King Iv the board must comprise of balance of power
majority must be non-executive of which majority must be
independent Sell-Alot has 4 non-executive and all 4 are not
independent so they don’t comply.
b)
• Mr Simbane is also the chairperson of the audit committee of which the King IV
states the chairperson of the board can not be a member of the audit committee
and him being the chairperson also makes him a member of the audit committee
he therefore does not comply with the King IV.
• In terms of the King IV Mr Simbane must be independent and not conflicted he is
therefore not independent as he owns more than 5% of Sell-Alot and is
conflicted since he is invested in the company, so they don’t comply with the
King IV.
• In terms of the King IV the chairperson must be appointed on an annual basis
and Mr Simbane has been the chairperson for 12 years, so they don’t comply
with the King IV.
, lOMoARcPSD|18222662
C)
• The audit committee must appoint a chairperson who is independent and non-
executive Mr simbane not independent as he owns more than 5% of the
company they don’t comply.
• The chairperson of the board must not be a member of the audit committee Mr
Simbane is a member, so they don’t comply.
• The audit committee must comprise of at least 3 members, and they don’t have
3 members except for Mr Simbane so they don’t comply.
• All members must be independent and non-executive, and their members are
not independent so they don’t comply.
1.2.1 Yes, it is UBUNTU, as they will build the school in Tsomo town and provide all the
textbooks without expecting anything in return.
1.2.2. It helps gain trust in the community and may help as an investment to the
company
1.3
1.4
Identification of example Components of control
1.an internal audit function is established 1.Risk assessment
an outsourced to an audit firm, the
internal audit reports back to the board
and audit committee.
2.In response to the governing body’s 2.Control environment
awareness of the importance of ethical
values
3.Sell-Alot places high reliance on 3.Control environment
employees
, lOMoARcPSD|18222662
ASSESSMENT 2
Corporate governance in Accountancy
AUE2602
Semester 2 2025
Department of Auditing
ASSESSMENT 2 : ESSAY-TYPE QUESTION
The assessment covers lessons 1 to 2.
UNIQUE ASSESSMENT NUMBER FOR THE SECOND SEMESTER: 639458
DATE OF SUBMISSION
First semester: 11 September 2025
