Normalised Group profit before tax £31.9m (2021: £27.5m)
3 Our application of materiality and an overview of the scope of our audit continued We agreed to report to the Audit Committee any corrected or uncorrected identified misstatements exceeding £72,000 (2021: £60,000), in addition to other identified misstatements that warranted reporting on qualitative grounds. Of the Group’s 45 (2021: 41) reporting components, we subjected 9 (2021: 8) to full scope audits for Group purposes. We conducted reviews of financial information (including enquiry) at a further 2 (2021: 4) non-significant components as these components were not individually financially significant enough to require an audit for Group reporting purposes but a review was performed to provide further coverage over the Group’s results. The Group team performed procedures on the items excluded from normalised profit before tax. The components within the scope of our work accounted for the percentages illustrated opposite. For the residual components, we performed analysis at an aggregated Group level to re-examine our assessment that there were no significant risks of material misstatement within these. The Group team instructed component auditors as to the significant areas to be covered, including the relevant risks detailed above and the information to be reported back. The Group team approved the component materialities, which ranged from £0.36m to £0.90m (2021: £0.22m to £0.55m), having regard to the mix of size and risk profile of the Group across the components. The work on 1 of the 9 in scope components (2021: 1 of the 8 components) was performed by component auditors and the rest, including the audit of the Parent Company, was performed by the Group team. The Group team held video and telephone conference meetings with 1 (2021: 1) component location in the Netherlands to assess audit risk and strategy. At these meetings, the findings reported to the Group team were discussed in more detail, and any further work required by the Group team was then performed by the component auditor. The scope of the audit work performed was fully substantive as we did not rely upon the Group’s internal control over financial reporting.
Group materiality £1.4m (2021: £1.2m) £1.4m Whole financial statements materiality (2021: £1.2m) £0.91m Whole financial statements performance materiality (2021: £0.78m) £0.9m Range of materiality at 9 components (£0.36m–£0.9m) (2021: £0.22m to
Normalised PBT Group materiality
£0.55m) £0.07m + + 4 + + I I Total profits and losses that made up Group profit before tax 79++ 55++1616++II 87++ 22++1111++II 84% (2021: 89%) 87 79 2 5 Misstatements reported to the audit committee (2021: £0.06m)
Group revenue 86++ 44++1010++II 86++ 88++66++II 90% (2021: 94%) 86 86 Group total assets 96++ 11++33++II 92++ 33++55++II 96% (2021: 95%) 92 96 3 8 4
4 The impact of climate change on our audit
In planning our audit, we have considered the potential impact of risks arising from climate change on the Group’s business and its financial statements. As part of our audit we performed a risk assessment, including making enquiries of management, reading board meeting minutes and applying our knowledge of the Group and sector in which it operates to understand the extent of the potential impact of climate change risk on the Group’s financial statements. We concluded that climate risk has no significant effect this year on the financial statements due to the nature of the Group’s current business operations. As a result, there was no impact from climate risk on our key audit matters. We have read the disclosure of climate related information in the front half of the annual report and considered consistency with the financial statements and our audit knowledge. There were no matters to report in respect of this procedure.
Full scope for group audit purposes 2022 Specified risk-focused audit procedures 2022 Full scope for group audit purposes 2021 Specified risk-focused audit procedures 2021 Residual components
NCC Group plc — Annual report and accounts for the year ended 31 May 2022
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