Chrysler 2014 Annual Report Download - page 297

2014 | ANNUAL REPORT 295
Materiality
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 the financial statements.
The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of
identified misstatements on our opinion.
Based on our professional judgment we determined the materiality for the consolidated financial statements as a
whole at €400 million. The materiality is based on approximately 0.5% of the consolidated revenues. We have also
taken into account misstatements and/or possible misstatements that in our opinion are material to the users of the
consolidated financial statements for qualitative reasons.
We agreed with the audit committee that misstatements in excess of €20 million, 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 our group audit
Fiat Chrysler Automobiles N.V. is head of a group of entities. The financial information of this group is included in the
consolidated financial statements of Fiat Chrysler Automobiles 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 carried
out for group entities. Group entities are considered significant components either because of their individual financial
significance or because they are likely to include significant risks of material misstatement due to their specific nature
or circumstances. 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. Fiat Chrysler Automobiles N.V. is organized along seven
reportable segments, being NAFTA, EMEA, LATAM, APAC, Ferrari, Maserati and Components, along with certain
other corporate functions which are not included within the reportable segments.
In establishing the overall approach to the audit, we determined the type of work that needed to be performed at
the group entities level by us, as the group engagement team, or component auditors from other EY network firms
operating under our instruction. Where the work was performed by component auditors, we determined the level of
involvement we needed to have in the audit work at those group entities to be able to conclude whether sufficient
appropriate audit evidence had been obtained as a basis for our opinion on the Consolidated Financial Statements as
a whole.
Accordingly, we identified 106 of Fiat Chrysler Automobiles N.V.’s group entities, which, in our view, required an
audit of their complete financial information, either due to their overall size or their risk characteristics. Specific audit
procedures on certain balances and transactions were performed on a further 8 entities.
Of the remaining group entities, 27 were subject to analytical procedures, with a focus on higher risk balances and
additional audit procedures over specific transactions (for example, certain acquisitions and divestments). This,
together with additional procedures performed on consolidated level, provided us with the evidence we needed for our
opinion on the Consolidated Financial Statements as a whole.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
consolidated financial statements. We have communicated the key audit matters to the audit committee. The key
audit matters are not a comprehensive reflection of all matters discussed.
These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.