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1. Elaborate the following concepts with respect to corporate Governance: (5 Marks) A) Codes of corporate governance B) Audit committees C) Internal control effectiveness D) Communication with those charged with governance 2. Discuss the responsibilities of the management and those charged with governance on internal control as well as the reporting responsibilities of auditors. (5 Marks) 3. Mr. Zabeer was appointed as an audit director in K.P.M.G, audit company which has worldwide network of professional business and financial advisors, and was asked to conduct audit of their client Oman Ceramic Company (OCC) S.A.O.G, listed in Muscat Securities Market (MSM). The company was founded in 1990 and has its registered office in Muscat When going through the income statement Mr Zabeer found that the company has a total payroll of OMR 2. 150,000 and net income of OMR 1.880, 000 but the company failed record accrued wages of OMR 50,000 On enquiring Mr. Ahmed, chief accountant of the company who is friend of Mr. Zabeer said that the amount is immaterial and will not have significant effect on the presentation of financial statements. At the time of preparing the financial statements the company didn't disclose the omission what it was required to report as per International Financial Reporting Framework (IFRS). On believing his friend assertion while preparing the audit report the auditor didn't qualify the omission of accrued wages. Based on the above information answer the following queries: i) Did the auditor fail to fulfill ethical requirement as per applicable International Standards on Auditing (ISA)? What should be the magnitude of transaction to measure its materiality? ii) If the auditor didn't believe his friend what will be his opinion on the financial disclosure of Oman Ceramic Company (OCC) (5 Marks) ***End of Assignment**

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