AUE4863 ASSIGNMENT 2 2026 – FULLY ANSWERED (DUE 29 JUNE 2026)

Description

AUE4863 Assignment 2 Memo | Due 29 June 2026. All questions fully answered. QUESTION 1 25 MARKS
Read the scenario and then answer the question that follows:
Lefa–La Batho Agri Processing (Pty) Ltd (La Batho) is a medium-sized food processing company registered in terms of South African law. The company’s head office is based in Mpumalanga, and it has branches in Gauteng, Limpopo, Free State and North West province. The company produces maize meal, sorghum, cooking oils, peanut butter and canned vegetables for schools, stores and NGOs in South Africa, Lesotho, Eswatini and Mozambique. La Batho operates four production and storage hubs: Mbombela (head office), Mooketsi, Botshabelo and Mafikeng.
La Batho employs approximately 1 850 people across its production hubs and distribution, warehouse and administrative functions. Management is concerned about the inherent risk of inventory and asset misappropriation due to the high decentralisation of production hubs and the large volume of raw materials and finished goods moving between hubs, across borders and to neighbouring countries.
These risks are further heightened by past occurrences of unexplained shortages and multiple anomalies in the handling and movement of raw materials, as recently uncovered by the company’s internal audit department, led by Mathapelo Masemola.
REQUIRED
Identify and critically discuss four (4) different schemes through which raw materials and finished goods could be misappropriated at La Batho.