EasyJet 2015 Annual Report Download - page 89

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Strategic report Governance Accounts
www.easyJet.com
Independent auditors’ report to the members of easyJet plc
REPORT ON THE ACCOUNTS
Our opinion
In our opinion:
• easyJet plc’s Group accounts and Company accounts (together
the “accounts”) give a true and fair view of the state of the
Group’s and of the Company’s affairs as at 30 September 2015
and of the Group’s profit and the Group’s and the Company’s
cash flows for the year then ended;
• the Group accounts have been properly prepared in accordance
with International Financial Reporting Standards (“IFRSs”) as
adopted by the European Union;
• the Company accounts have been properly prepared in
accordance with IFRSs as adopted by the European Union and
as applied in accordance with the provisions of the Companies
Act 2006; and
• the accounts have been prepared in accordance with the
requirements of the Companies Act 2006 and, as regards
the Group accounts, Article 4 of the IAS Regulation.
What we have audited
The accounts, included within the Annual Report, comprise:
• the Group consolidated and Company statements of financial
position as at 30 September 2015;
• the Group consolidated income statement and consolidated
statement of comprehensive income for the year then ended;
• the Group consolidated and Company statements of cash flows
for the year then ended;
• the Group consolidated and Company statements of changes
in equity for the year then ended; and
• the notes to the accounts, which include a summary of
significant accounting policies and other explanatory information.
The financial reporting framework that has been applied in
the preparation of the accounts is applicable law and IFRSs as
adopted by the European Union and, as regards the Company
accounts, as applied in accordance with the provisions of the
Companies Act 2006.
Our audit approach
Context
The scope of our audit was tailored to ensure that we performed sufficient work to be able to give an opinion on the accounts
as a whole, taking into account the geographic and operational structure of the Group, the accounting systems, processes
and controls, and the industry and regulatory environment in which the Group operates.
Overview Materiality
Overall Group materiality: £34 million which represents 5% of profit before tax.
Audit scope
• The Group operates through the Company and its trading subsidiaries; and the Group
accounts are a consolidation of these entities.
• The accounting for these entities, along with the Group consolidation, is largely centralised
in the UK.
• Our audit scope comprises an audit of the complete financial information of the trading
subsidiaries and the Company.
Areas of focus
Our areas of focus have not substantively changed from last year and comprised:
• Aircraft maintenance provisions.
• Treasury operations.
• Accruals and other provisions.
• Goodwill and landing rights impairment assessment.
The scope of our audit and our areas of focus
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”).
We designed our audit by determining materiality and assessing
the risks of material misstatement in the accounts. In particular,
we looked at where the Directors made subjective judgements,
for example in respect of significant accounting estimates 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.
The risks of material misstatement that had the greatest effect
on our audit, including the allocation of our resources and effort,
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 accounts as a whole, and
any comments we make on the results of our procedures should
be read in this context. This is not a complete list of all risks
identified by our audit. The Audit Committee’s report on those
matters below that they considered to be significant issues in
relation to the accounts is set out on page 56.
Materiality
Audit scope
Areas of
focus