CORPORATE GOVERNANCE

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MARKS (20)
Your firm has recently been appointed as auditors of Drivelink Ltd (Drivelink). The
company is listed on the ZSE and operates within the transport industry. The year end of the
company is 31 July 2021. Drivelink‘s business comprises the provision of transport services
to passengers. The company has been in operation for a number of years and is renowned for
the exceptional service it provides to its clients and for its luxurious coaches. The company
is planning to use the audited financial statements to apply for finance in order to expand
their operations.

You are an audit manager on the engagement and are currently reviewing the audit file.
Other than the issues detailed below, you are satisfied with the audit work performed on the
rest of the audit sections.

Corporate governance
Composition of the board of directors
Bobby Jackson Chairman and Non-Executive Director
Michelle Jackson Chief Executive Officer (CEO)
David Kriel Chief Financial Officer (CFO)
Mavis Motaung Human Resource Director
Sarah Edwards Operations Director
Thabo Mogapi Marketing Director
Mark Lewis Non-executive Director
Marie Kriel Non-executive Director

Michelle and Bobby Jackson are both members of the Institute of Chartered Accountants of
Zimbabwe (ICAZ). They followed in the footsteps of their father who also was a chartered
accountant. Mavis Motaung graduated with a Diploma in HR Management and has fifteen
years' experience, but she has never worked for any organisation other than Drivelink. She
normally ignores any financial documents and records given to her, as they simply confuse
her. Marie Kriel is married to David Kriel. Mark Lewis is a marketing specialist. Various
directors hold shares in the company and this shareholding amounts to 16%. The total shares
held by Bobby Jackson are 8%.

Composition of the Audit Committee

Bobby Jackson Chairman
David Kriel
Mavis Motaung
Marie Kriel
Mark Lewis

Bobby Jackson expressed his surprise when you contacted him to request that your firm be
allowed to attend the Audit Committee meeting scheduled for June 2021. He also seemed
surprised to hear that your firm had been appointed as auditors, and seemed reluctant to
invite you to the meeting.

Composition of the Remuneration Committee

You are satisfied with the composition and activities of the Remuneration Committee.

Required
Discuss any corporate governance (ZIMCODE only) concerns that you may have based on
the information provided. You are required to provide sufficient reasons for you concerns.