Boskalis Annual Report 2020
We have also taken into account misstatements and/or possible misstatements that in our opinion are material for the users of the financial statements for qualitative reasons. We agreed with the Supervisory Board that misstatements in excess of EUR 975 thousand, which are identified during the audit, would be reported to them, as well as smaller misstatements that in our view must be reported on qualitative grounds. SCOPE OF THE GROUP AUDIT Royal Boskalis Westminster N.V. is at the head of a group of entities. The financial information of this group is included in the consolidated financial statements of Royal Boskalis Westminster N.V. Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing the group audit. In this respect we have determined the nature and extent of the audit procedures to be carried out for group entities. Decisive were the size and/or the risk profile of the group entities or operations. On this basis, we selected group entities for which an audit or review had to be carried out on the complete set of financial information or specific items. Our group audit mainly focused on significant group entities and joint ventures in terms of size and/or significant risks, within the operating segments Dredging & Inland Infra, Offshore Energy and Towage & Salvage. We have performed most of the audit procedures at those segments ourselves. For the audit work in Australia, Singapore, Finland, Denmark and a joint venture in the Netherlands we used other EY network firms. We have used the work of other non-EY firms when auditing group entities, especially in the Middle East, which represented approximately 10% of the revenue. Also some joint ventures were audited by non-EY firms. We had (virtual) meetings with the component auditors and local management on the audit findings and financial reporting. We interacted with all component teams, where appropriate, during various stages of the audit and were responsible for the scope and direction of the audit process. In total these procedures represent approximately 80% of the group’s revenue. For the other group entities we performed review procedures or other audit procedures to respond to any risks of material misstatements in the financial statements. Because of the (international) travel restrictions and social distancing due to the COVID-19 pandemic, we needed to restrict or have been unable to visit foreign management and component auditors on site to discuss, review and evaluate, amongst others, relevant parts of the component auditor’s audit documentation and to discuss significant matters arising from that evaluation. This
limits our observation and increases the risk of missing certain signals. In order to compensate for the limitations related to physical contact and direct observation, we performed alternative procedures to obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. In these extraordinary circumstances we predominantly used communication technology and written information exchange. We performed substantive procedures, such as test of details and inspection of supporting documentation relating to the progress of projects in order to obtain sufficient and appropriate audit evidence. Our additional procedures consisted, amongst others, of virtual site visits, remote review of audit documentation files of component auditors and the use of public available information to obtain supportive audit information. We performed audit procedures on certain accounting areas at group level, such as impairment tests of goodwill, property, plant and equipment, accounting for business combinations Horizon Geosciences and Rever Offshore and other areas such as uncertain tax positions. By performing the procedures mentioned above at group entities, together with additional procedures at group level, we have been able to obtain sufficient and appropriate audit evidence about the group’s financial information to provide an opinion about the consolidated financial statements. Teaming, use of specialists We ensured that the audit teams both at group and at component levels included the appropriate skills and competences which are needed for the audit of Royal Boskalis Westminster N.V. We included specialists in the areas of IT audit, forensics, treasury, income tax and have made use of our own experts in the areas of valuation of goodwill, joint ventures, property, plant and equipment and actuaries. OUR FOCUS ON FRAUD AND NON-COMPLIANCE WITH LAWS AND REGULATIONS Our responsibility Although we are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect non-compliance with all laws and regulations, it is our responsibility to obtain reasonable assurance that the financial statements, taken as a whole, are free from material misstatement, whether caused by fraud or error. Non-compliance with laws and regulations may result in fines, litigation or other consequences for the company that may have a material effect on the financial statements.
ANNUAL REPORT 2020 – BOSKALIS
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