Financial Statements For the year ended
Overview of our audit approach
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- Audit response Our results Description Disclosures KAM
| Overview of our audit approach • Overall materiality: k, which represents 1.75% of the group’s total income. Key audit matters (KAM) were identified as Revenue recognition (same as previous year Accurate recognition of intangible assets (new in current year and Accuracy of defined benefit pension scheme liabilities (same as previous year). Our auditor’s report for the year ended 31 March 2021 included two key audit matters that have not been reported as key audit matters in our current year’s report. These related to the impact on the valuation of intangible assets arising from IFRIC updates effective in the previous year. A significant proportion of the assets have been written off to reverse any additions purchased up to July 2021 and the associated amortisation, leaving any remaining balances immaterial, therefore removing the risk around the recoverability of the value. The changes required, however, increase the risk of error incorrectly applying the new IFRIC, therefore presenting a risk around the accuracy of adjustments made. Going concern is not considered to be a KAM in the current year, as there is lower risk of reduced trading with the pandemic now presenting fewer threats to businesses from lockdowns. We undertook full scope audit procedures on the significant group components, being the Association of Chartered Certified Accountants (parent company) and Certified Accountants Investment Company Limited. Specific procedures were performed on Certified Accountants Educational Projects Limited. This gives us coverage of nearly 99% over total income, 93% over surplus before tax, 95% over total assets and 82% over cash. Audit response Our results Description Disclosures KAM Materiality Scoping Key audit matters Our approach to the audit 62 In the graph below, we have presented the key audit matters, significant risks and other risks relevant to the audit. Accurate recognition of intangible assets Revenue recognition Pensions liabilities Management override Going concern Deferred income Investments Provisions Accrued income Employee renumeration Trade receivables High Potential financial statement impact Extent of management judgement High Low Key audit matter Significant risk Other risk 63 Key audit matter How our scope addressed the matter Download 0.68 Mb. Share with your friends:
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