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.

Identify
the most appropriate business risk for Mzanzi Retail for the identified control
weakness?

Question

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.

Identify
the most appropriate business risk for Mzanzi Retail for the identified control
weakness?

Answer

Infrequent performance evaluations may reduce staff motivation and
productivity.

Answer

Lack of
centralised training documentation may lead to repeated onboarding sessions and
inefficient use of resources.

Answer

Unauthorised
payroll forms may result in invalid masterfile amendments, leading to
inaccurate salary payments and financial losses.

Answer

Informal
employee feedback processes may cause missed improvement opportunities and
stagnant staff development.

Client: Mzansi Retail	Year-end: 30 June 2025	B1
Prepared by: K Dlamini	Preparation date: 16 July 2025
Reviewed by: S Naidoo	Review date: 18 July 2025
Subject: Weaknesses – salaried employees masterfile amendments
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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MNT Auditors has been appointed as the external auditor of Mzansi Retail Group ...

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