Carphone Warehouse 2016 Annual Report Download - page 88

Independent Auditor’s report
86
An overview of the scope of our audit
We have reassessed our Group audit scope following the completion of the disposal of certain European operations during the
year and accordingly have not performed a full scope audit in Spain or an audit of specified account balances in Greece, both
of which we did in the prior year, although these components are both still subject to local statutory audits and are subject to
analytical procedures as part of work performed at the parent entity level.
Our Group audit was scoped by obtaining an understanding of the Group and its environment, including Group-wide controls,
and assessing the risks of material misstatement at the Group level. Based on that assessment, we focused our Group audit
scope primarily on the audit work of the retail operations in the UK and the Nordics. Each of these components requires a local
statutory audit.
These locations represent the principal business units and account for approximately 94% of the Group’s revenue from
continuing operations (2014/15: 93%) and 84% of the Group’s Headline profit before tax. Each location was selected to provide
an appropriate basis for undertaking audit work to address the risks of material misstatement identified above. Our audit work at
these locations was executed at levels of materiality applicable to each individual entity which were lower than Group materiality
and ranged from £3 million to £10 million (2014/15: £3 million to £8 million).
At the Dixons Carphone plc parent entity level we also tested the consolidation process and carried out analytical procedures
to confirm our conclusion that there were no significant risks of material misstatement of the aggregated financial information
of the remaining components not subject to audit or audit of specified account balances.
The Group audit team is closely involved in the audit of the UK components, being the largest part of the Group, throughout the year
including attendance at key audit planning and closing meetings. In addition, the Group audit team continued to follow a programme
of planned visits to overseas components that has been designed so that a senior member of the Group audit team visits the most
significant locations where the Group audit scope was focused at least once each year. For the year ended 30 April 2016, senior
members of the Group audit team visited Norway, where the Nordics head office is located, on two occasions.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion:
•the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the Companies
Act 2006; and
•the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements
are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
•we have not received all the information and explanations we require for our audit; or
•adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been
received from branches not visited by us; or
•the parent company financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ remuneration
have not been made or the part of the Directors’ Remuneration Report to be audited is not in agreement with the accounting
records and returns. We have nothing to report arising from these matters.
Corporate Governance statement
Under the Listing Rules we are also required to review part of the Corporate Governance Statement relating to the Company’s
compliance with certain provisions of the UK Corporate Governance Code. We have nothing to report arising from our review.
Our duty to read other information in the Annual Report and Accounts
Under International Standards on Auditing (UK and Ireland), we are required to report to you if, in our opinion, information in the
Annual Report and Accounts is:
•materially inconsistent with the information in the audited financial statements; or
•apparently materially incorrect based on, or materially inconsistent with, our knowledge of the Group acquired in the course of
performing our audit; or
•otherwise misleading.
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