Auditing · Internal Control and Corporate Governance

Consider the following recommendations drawn up to improve a company's corporate governance and internal controls: 1. Establish an audit committee with at least four directors as is required for all listed companies. 2. Establish an internal audit department as is required for all listed companies. 3. Once an audit committee and an internal audit department are established, the head of the internal audit department should report to the audit committee. 4. The company should not rely on the external audit to inform them of deficiencies in internal controls. Which TWO of the above recommendations are valid?