BT 2015 Annual Report Download - page 140

138 BT Group plc
Annual Report 2015
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Independent auditors’ report to the members of
BT Group plc
eport on the roup financial stateents
Our opinion
n our opinion  roup plcs roup financial stateents the ‘financial
statements’):
 ive a true and fair view of the state of the roups aairs as
at 31arch 01 and of its profit and cash ows for the ear
thenended;
 have been properly prepared in accordance with International
inancial eportin tandards ‘IFRS’) as adopted by the European
Union; and
 have been prepared in accordance with the requirements of the
Companies Act 2006 and Article 4 of the IAS Regulation.
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s eplained in note 1 to the financial stateents the roup in addition
to applying IFRS as adopted by the European Union, has also applied
 as issued b the nternational ccountin tandards oard ‘IASB’).
n our opinion the roup financial stateents copl with  as
issued by the IASB.
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 roup plcs financial stateents coprise
 the group balance sheet as at 31 March 2015;
 the group income statement and group statement of comprehensive
income for the year then ended;
 the roup cash ow stateent for the ear then ended
 the group statement of changes in equity for the year then ended; and
 the notes to the financial stateents which include a suar of
sinificant accountin policies and other eplanator inforation.
Certain required disclosures have been presented elsewhere in the
nnual eport  or 0- 01 the ‘Annual Report’), rather than in
the notes to the financial stateents. hese are cross-referenced fro
the financial stateents and are identified as audited.
he financial reportin fraewor that has been applied in the
preparation of the financial stateents is applicable law and 
as adopted by the European Union.
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Overview
 Overall group materiality: £120m, which represents 5% of the
averae of profit before ta for the current ear and the previous
three years.
 We conducted full scope audit work at three reporting units – the UK,
Italy and Germany.
 pecific audit procedures were perfored in four reportin units
based on our risk assessment in France, Ireland, the Netherlands
and Spain.
 The reporting units within our audit scope accounted for over 80%
of the roups revenue and profit before ta.
Our assessment of the risk of material misstatement also informed
our views on the areas of particular focus for our work which are
listed below:
 Major contracts in BT Global Services and BT Wholesale
 Accuracy of revenue due to complex billing systems
 Pension scheme obligations and unquoted investments in the
BTPension Scheme
 Regulatory and other provisions
 Capitalisation practices and asset lives for property, plant and
equipment and software intangible assets
 Recognition and measurement of potential tax exposures and
tax assets
 Assessment of the carrying value of goodwill in BT Global Services
The scope of our audit and our areas of focus
We conducted our audit in accordance with International Standards
on uditin UK and reland ‘s UK  reland’).
We designed our audit by determining materiality and assessing the
riss of aterial isstateent in the financial stateents. n particular
we looked at where the directors made subjective judgements, for
eaple in respect of sinificant accountin estiates that involved
making assumptions and considering future events that are inherently
uncertain. As in all of our audits, we also addressed the risk of
management override of internal controls, including evaluating whether
there was evidence of bias by the directors that represented a risk of
material misstatement due to fraud.
he riss of aterial isstateent that had the reatest eect on our
audit includin the allocation of our resources and eort are identified
as ‘areas of focus’ in the table 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 stateents as a whole and an coents we
make on the results of our procedures should be read in this context.
his is not a coplete list of all riss identified b our audit.