Financial Statements For the year ended
Performance materiality used to
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| Performance materiality used to drive the extent of our testing We set performance materiality at an amount less than materiality for the financial statements as a whole to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole. Performance materiality threshold £2,908k, which is 75% of financial statement materiality Significant judgements made by auditor in determining performance materiality In determining performance materiality, we considered a number of factors which could impact the probability that the aggregate of all uncorrected and undetected misstatements exceeds materiality. These factors include objectives, strategies, business risks, fraud risk, previously identified misstatements and internal control components. In addition to these, we have considered our risk assessment of controls and utilised prior year knowledge and experience from the audit to determine the performance materiality amount. Specific materiality We determined that key management personnel remuneration should be subject to a specific materiality amount lower than financial statement materiality. The amount has been changed from the prior year where no specific materiality was determined. The change has arisen from a higher inherent risk associated with key management personnel remuneration. Communication of misstatements to the audit committee We determine a threshold for reporting unadjusted differences to the Audit Committee. Threshold for communication £194k and misstatements below that threshold that, in our view, warrant reporting on qualitative grounds. The graph below illustrates how performance materiality interacts with our overall materiality and the tolerance for potential uncorrected misstatements. Overall materiality FSM £3,877k, Total income £221,558k PM k, 75% TFPUM k, 25% FSM: Financial statements materiality PM: Performance materiality TFPUM: Tolerance for potential uncorrected misstatements 67 An overview of the scope of our audit We performed a risk-based audit that requires an understanding of the group’s business and in particular matters related to: Download 0.68 Mb. Share with your friends:
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