Page 40 - Hardide-Annual-Report-2021
P. 40

 40 Independent Auditor's Report
INDEPENDENT AUDITOR’S REPORT To the Members of Hardide plc
OPINION
We have audited the financial statements of Hardide Plc (the ‘Group’) for the year ended 30 September 2021 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated and Company Statement of Changes in Equity, the Consolidated and Company Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.
In our opinion:
• the financial statements give a true and fair view of the state of the Group and of the parent company’s affairs as at 30 September 2021 and of the Group’s loss and the Group’s and parent company’s cash flows for the year then ended;
• the financial statements of the Group and of the parent company have been properly prepared in accordance with IFRSs as adopted by the European Union and, as regard the parent company’s financial statements, as applied in accordance with the provisions of the Companies Act 2006; and
• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
 BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further discussed in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the
Group and Company in accordance with the
ethical requirements that are relevant to our audit
of the financial statements in the UK, including the FRC’s Ethical Standards as applied to listed entities, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
AN OVERVIEW OF THE SCOPE OF OUR AUDIT
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)).
We designed our audit by determining materiality and assessing the risks of material misstatement in the financial statements. In particular, we looked at where the Directors made subjective judgements, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all our audits we also addressed the risk of management override of internal controls, including evaluating whether there is evidence of bias by the Directors that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole, taking into account our understanding of the Group and parent company and their environment, the accounting processes and controls, and the industry in which the Group and Company operate.
The audit scope was as follows:
Hardide plc – the parent company holding investments throughout the Group – full scope audit.
Hardide Coatings Limited – a trading entity that generates a significant amount of the trading results for the Group - full scope audit.
Hardide Coatings Inc – a trading entity that generates a significant amount of the trading results for the Group – audit procedures for the purpose of inclusion in the consolidated financial statements.
The risks of material misstatement that had the greatest effect on our audit, including the allocation
of our resources and effort, are identified as ‘areas of focus’ in the Key audit matters section below. We have also set out how we tailored our audit to address these specific areas in order to provide an opinion on the financial statements as a whole, and any comments we make on the results of our procedures should be read in this context. This is not a complete list of all risks identified by our audit.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the overall audit strategy; the allocation
of resources in the audit; and directing efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
REVENUE RECOGNITION
Risk description
There is an inherent risk of error and fraud regarding revenue.
How the scope of our audit responded to the risk
To assess the appropriateness and completeness of revenue recognised in the year we performed the following procedures:
• discussed the revenue recognition policy with management and performed a walkthrough to understand the revenue recognition process;
• examined a sample of revenue transactions by reference to underlying contractual terms;
• examined on a sample basis sales orders, goods delivery notes, invoices and postings for items despatched during the year and around the period end;
• reviewed manual journals posted to the revenue account in the period and subsequent to year-end gaining an understanding of the appropriateness of these;































































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