Airbus 2015 Annual Report Download - page 295

AIRBUS GROUP FINANCIAL STATEMENTS 2015 l 113 l
Other Supplementary Information Including the Independent Auditor’s Report
5.
Basis for our Opinion
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under
those standards are further described in the ’Our responsibilities for the audit of the financial statements’ section of our report.
We are independent of AirbusGroup SE in accordance with the “Verordening inzake de onafhankelijkheid van accountants bij
assurance-opdrachten” (ViO) and other relevant independence regulations in the Netherlands. Furthermore, we have complied
with the “Verordening gedrags- en beroepsregels accountants” (VGBA).
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Audit Approach
Summary
Unqualified audit opinion Materiality
 Overall materiality of EUR 200million
 5.9% of consolidated profit before tax
Key audit matters
 Accounting for construction contracts, including revenue
recognition and loss provisions
 Valuation of inventories for contracts accounted for under
IAS18 and completeness of provisions for contract losses
andcustomer service obligations
 Litigation and claims and risk of non-compliance with laws
and regulations
 Goodwill impairment
 Derivative financial instruments, including impact on
capitalisation of AirbusGroup
Scope of the Group audit
 Coverage of 96% of Group revenue and 96% of Group total
assets
Materiality
Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these 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 judgement we determined the materiality for the financial statements as a whole at EUR200 (2014:
EUR 222) million. The materiality is determined with reference to consolidated profit before income taxes (2015: 5.9%; 2014: 6.9%).
We consider consolidated profit before income taxes as the most appropriate benchmark given the nature of the business. We
have also taken into account misstatements and/or possible misstatements that in our opinion are material for qualitative reasons
for the users of the financial statements.
We agreed with the Board of Directors and Audit Committee that misstatements in excess of EUR10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
AirbusGroup SE is head of a group of entities, hereafter referred to as “AirbusGroup” or “Group”. The financial information of this
Group is included in the financial statements of AirbusGroup SE.
Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing the Group
audit. In this context, we have determined the nature and extent of the audit procedures to be performed for the Group entities,
based on the significance and/or risk profile of entities or activities. On this basis, we selected Group entities for which an audit
had to be carried out on the complete set of financial information or specific items.
Our Group audit mainly focused on significant Group entities. A significant part of the audit is performed by other auditors within
the KPMG network or by other non-KPMG audit firms. The organisation and supervision of the audit of the financial statements
is a crucial part of our work.
We scope entities into the Group audit where they are of significant size, have significant risks to the Group associated with them
or are considered significant for other reasons. This resulted in coverage of 96% (2014: 96%) of total Group revenue and 96%
(2014: 98%) of total Group assets. For remaining entities, we performed, amongst others, analytical procedures to corroborate
our assessment that there are no significant risks of material misstatement within these entities.
Financial Statements 2015
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Annual Report 2015 Financial Statements 2015
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