The following information concerns individuals on Protea Limited’s (Protea) Board of Directors, as at 29 February 2020:

Should Mr Kolisi be a member of the Audit Committee in terms of the King IV Report? Choose the alternative that best answers the question:

You are the audit manager of the audit of Grab, short for Grab a

Cab (Pty) Ltd, a large taxi company. Grab has, gained the trust of the market

and improved their customer service and experience, mostly due to system

improvements and enhancements. As part of the entity-level assessment that was

performed, you noted a fully computerised accounting system. The following

control was identified at Grab:

All clients must have a Grab

account on the mobile application, and all personal data fields have to be

completed for regulatory purposes, or the account will not register. The

Protection of Personal Information Act 2013 applies.

L1T_An independent, non-executive director is a director who...

i) does not receive remuneration contingent on the performance of the company.

ii) is not a professional advisor to the company.

iii) has not been employed by the company in any executive capacity for the preceding two financial years.

iv) holds 6% of the shareholding of the company or its subsidiary.

v) is not a representative of a shareholder who has the ability to control or significantly influence the management. 

Choose the correct alternative.

Which ONE of the following alternatives will not lead to the financial director being held liable in terms of the Companies Act 71 of 2008?

Select the correct alternative to complete the following statement:

The “occurrence” management assertion means that …

Green-Green Market Ltd is a wholesaler supplying

fresh fruits and vegetables to a number of large retail grocery stores across

South Africa. Green-Green Market Ltd purchases inventory (fruits and

vegetables) directly from farmers and repackage the fruits and vegetables into

smaller units for household consumption, before sales to retail stores take

place. The following control procedure takes place in the acquisition and

payments cycle:

On transfer of goods from the receiving

bay to the warehouse, the stores clerk, Mr Stork, signs the goods received note

to acknowledge acceptance of the goods.

Which one of the following alternatives best describes the correct control procedure?

Protea Limited (Protea) is the largest distributor of consumer goods, general merchandise, home improvement equipment and is a wholesaler of basic foods in South Africa. Protea’s governance structure consists of the board of directors, assisted by four committees, namely the audit, remuneration, risk governance and nominations committees. The following information concerns individuals on Protea’s Board of Directors, as at 29 February 2020:

Choose the alternative that correctly indicate the committees that Mr Kolisi, as the CEO, is allowed to be a member of, in terms of the King IV Report:

1. Nominations committee
2. Remunerations committee
3. Risk governance committee
4. Social and ethics committee

You are the audit senior assigned to the audit of Speedy Ltd, a motor vehicle spares company.  

Speedy Ltd pays its creditors by electronic funds transfer (EFT). Mr Mahlangu, the creditors clerk, captures all invoices received from the creditors on the creditors module and then selects the latest invoices for payment first.  

Identify the risk in the above step due to a weakness in the preparation of the payment schedule.