Air New Zealand 2016 Annual Report Download - page 44

Independent Auditor’s Report (continued)
42
Other Information The directors are responsible for all other information. The other information includes
the Annual Shareholder Review and the information included with the Group financial
statements and audit report in the Annual Financial Results. Our opinion on the Group
financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.
Our responsibility is to read the other information and consider whether it is materially
inconsistent with the Group financial statements or our knowledge obtained in the audit
or otherwise appears to be materially misstated. If so, we are required to report that fact.
We have nothing to report in this regard.
Directors’ Responsibilities for the
Financial Statements of the Group
The directors are responsible on behalf of the Group for the preparation and fair presentation
of the Group financial statements in accordance with NZ IFRSs and IFRS, and for such
internal control as the directors determine is necessary to enable the preparation of Group
financial statements that are free from material misstatement, whether due to fraud or error.
The directors are also responsible for the publication of the Group financial statements,
whether in printed or electronic form.
In preparing the Group financial statements, the directors are responsible for assessing
the Group’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s Responsibilities for the
Audit of the Financial Statements
of the Group
Our objectives are to obtain reasonable assurance about whether the Group financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Our responsibility arises from
section 15 of the Public Audit Act 2001. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with the Auditor-General’s
Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on
the basis of these Group financial statements.
As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise
professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Group financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those
risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the use of the going concern basis of accounting by
the directors and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required
to draw attention in our auditor’s report to the related disclosures in the Group financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the Group financial statements,
including the disclosures, and whether the Group financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the Group financial
statements. We are responsible for the direction, supervision and performance of the Group
audit. We remain solely responsible for our audit opinion.