Our audit approach An audit is designed to provide reasonable assurance about whether the financial report is free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. We tailored the scope of our audits to ensure that we performed enough work to be able to give an opinion on the financial reports as a whole, taking into account the geographic and management structure of the Transurban Group, THT and TIL, their accounting processes and controls and the industry in which they operate. Audit Scope Our audits focused on where the Transurban Group, THT and TIL made subjective judgements; for example, significant accounting estimates involving assumptions and inherently uncertain future events and areas of complexity and reliance on IT systems and controls, such as the recognition of toll revenue. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial reports for the current period. The key audit matters were addressed in the context of our audits of the financial reports as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Further, any commentary on the outcomes of a particular audit procedure is made in that context. We communicated the key audit matters to the Audit and Risk Committee.
Recording of t oll r evenue
Group – Note B5 Key audit matter
THT – not applicable
TIL – not applicable
We performed the following procedures, amongst others: Obtained, together with PwC IT specialists, an understanding and evaluation of the IT control environment and transaction processing controls relevant to the recording of toll revenue. Our procedures included the testing of the design and operating effectiveness of relevant controls over revenue adjustments, write offs and image processing. Performed tests over a sample of key Information Technology General Controls (ITGCs) supporting the integrity of the tolling systems' operation, including access, operation and change management controls. For each consolidated toll road, we: o developed an understanding of the key terms of the concession agreements, including the term dates and performance obligations with regard to Australian accounting standards. o considered toll road price changes for each toll road during the year to ensure they are How our audits addressed the key audit matter
The recording of revenue for consolidated toll roads is reliant on tolling equipment and information technology (IT) systems. They are customised, complex systems with automated processes and controls that include: the identification of vehicle type, calculation of fare and the linking of the vehicle to the customer’s account for billing purposes or obtaining information from local transport authorities for vehicles that have not made a valid billing arrangement. Each consolidated toll road operates under a different concession agreement which governs how customers are charged. We considered this to be a key audit matter for the Group due to the large volume of transactions that were processed in the year, the unique nature of each toll road and the reliance on IT systems and controls.
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