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MNT Auditors has been appointed as the external auditor of Mzansi Retail Group ...
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MNT Auditors has been appointed as the external auditor of Mzansi Retail Group (Pty) Ltd (Mzansi Retail). The company’s financial year-end is 30 June. You are the
audit senior in charge of the audit for the 2025 year-end.
Background information on salaried employees
The company operates across seven business units with approximately 50 salaried staff members working in the following departments: store operations, supply chain, warehousing, merchandising, sales, finance and administration, and information technology. Each department is managed by a senior supervisor who reports to the operations director, Teboho Nkosi.
Client: Mzansi Retail
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Year-end: 30 June 2025
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B1
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Prepared by: K Dlamini
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Preparation date: 16 July 2025
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Reviewed by: S Naidoo
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Review date: 18 July 2025
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Subject: Weaknesses – salaried employees masterfile amendments
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After performing a system walkthrough and interviewing the senior supervisors of the respective departments, the following control weakness was noted:
Unnumbered “salaried employee masterfile amendment forms” are processed without formal approval from the operations director, Teboho Nkosi.
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Identify the most appropriate business risk for Mzanzi Retail for the identified control weakness?