SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 33
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
RISK MANAGEMENT continued
RISK MANAGEMENT IS EMBEDDED IN SASOL’S STRATEGIC AND OPERATIONAL DECISION-MAKING PROCESSES continued
Internal control framework and assessment
The Board, supported by the Audit Committee, is ultimately accountable for Sasol’s internal control system,
which provides reasonable assurance against material misstatement and loss. This is achieved through a
combined assurance model (CAM) that integrates assurance from management, internal functions, and external
providers. The model ensures effective risk mitigation, reliable reporting, and alignment with Sasol’s strategic
priorities, underpinned by strong ethics and compliance mechanisms.
Our combined assurance model relating to internal control over financial reporting (ICFR)
Sasol’s combined assurance model continues to operate under
the Board-approved Risk Policy and strategic risk management
intent. Management identifies material risks and implements
the necessary internal controls. The process is monitored and
evaluated by Sasol Assurance Services , while external audit
teams cover key controls and accounting matters during their
audits. Other levels of external assurance are obtained as and
when required.
For the year ended 30 June 2025, six material weaknesses
(MWs) in ICFR were recorded by management, following the
reporting of four MWs in FY24. Of the FY24 MWs, one
previously reported weakness has been closed. Below is a
summary of all the weaknesses (inclusive of the closed
weakness):
• Risk Assessment – Persisting from FY24, this weakness
relates to inadequate scoping and risk identification
processes. While progress has been made through updated
frameworks and systematisation, resource constraints and
new findings have delayed full remediation.
• Control Design and Execution – Also carried over from
FY24, this weakness relates to inadequate level of precision
and evidence of review in control execution. Training and
revised standards have led to improvements, but consistent
execution remains a challenge.
• Revenue Recognition – Previously focused on Sasol Oil’s
consignment inventory, this weakness has been expanded
to include broader deficiencies in South African revenue
processes, particularly missing controls over system
interfaces and data accuracy.
• IT General Controls – Eurasia (Closed) – This FY24 weakness
was successfully remediated and closed after confirming the
design and operating effectiveness of key controls.
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INTERNAL
ASSURANCE
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EXTERNAL
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• Impairment Processes – Newly identified in FY25, this
weakness stems from errors in the WACC rate and deferred
tax calculations, revealing insufficient precision and review
in Southern African impairment assessments.
• IT General Controls – Southern Africa – Widespread
deficiencies in user access and change management across
critical financial systems led to this new material weakness.
Vacancies and resource constraints hindered remediation
efforts.
• ERP Conversion – Italy – Following the SAP S/4HANA rollout
under Project STRIVE, control design and implementation
issues across integrated processes resulted in a pervasive
material weakness.
Management remains committed to strengthening the control
environment and progressing remediation actions. Despite
these weaknesses, the Audit Committee believes the financial
statements fairly present Sasol’s financial position and
performance in accordance with IFRS.
Refer to the report from the Audit Committee in the Annual Financial Statements regarding the material weaknesses identified,
available on our website www.sasol.com
SASOL INTEGRATED REPORT 2025
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