Chrysler 2015 Annual Report Download - page 281

2015 | ANNUAL REPORT 281
Materiality
Materiality €400 million
Benchmark used Approximately 0,5% of Revenues
Additional explanation The materiality is based on approximately 0.5% of the
consolidated revenues.Based on perspectives and expectations
of the users of the financial statements in the context of our
understanding of the entity and the environment in which it
operates we determined the materiality for the financial
statements as a whole at €400 million. Materiality is based on
revenues, as we consider Fiat Chrysler Automobiles N.V. is
operating near breakeven and therefore an earnings based
measure is not an appropriate basis to determine our materiality.
We have also taken into account misstatements and/or possible misstatements that in our opinion are material to the
users of the 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 the group audit
Fiat Chrysler Automobiles N . V. i s the parent of a group of entities. The financial information of this group is
included in the consolidated financial statements of Fiat Chrysler Automobiles N.V. The company is organized along
six reportable segments, being NAFTA, EMEA, LATAM, APAC,Maserati and Components, along with certain other
corporate functions which are not included within the reportable segments. Note that due to the spin-off the
reportable segment Ferrari is disclosed as discontinued operations.
Our group audit mainly focused on significant 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. All such significant group entities (comprising
109 entities) were included in the scope of our group audit.
In establishing the overall approach to the audit, we determined the type of work that is needed to be done by us, as
group auditors, or by component auditors derived from certain member firms of Ernst & Young Global Limited and
operating under our instructions.
Accordingly, we identified six 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
scope audit procedures on certain balances and transactions were performed on seventeen entities. Limited scope
procedures are performed on a further 75 entities. In total these procedures represent 89% of the group’s total assets
and 90% of revenue.