Experian 2016 Annual Report Download - page 110

108 Financial statements •Independent auditor’s report
Independent auditor’s report
to the members of Experian plc
Report on the financial statements
Our opinion
In our opinion:
• Experian plc’s Group and Company financial statements (the ‘financial statements’) give a true and fair view of the state of the
Group’s and Company’s affairs as at 31 March 2016 and of the Group’s profit and cash flows and the Company’s loss for the year
then ended;
• the Group financial statements have been properly prepared in accordance with International Financial Reporting Standards
(‘IFRSs’) as adopted by the European Union;
• the Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
• the Group financial statements have been properly prepared in accordance with the requirements of the Companies (Jersey)
Law 1991.
What we have audited
The financial statements, included within the Annual Report, comprise:
• the Group and Company balance sheets as at 31 March 2016;
• the Group income statement, Company profit and loss account and Group and Company statements of comprehensive income
for the year then ended;
• the Group and Company statements of changes in total equity and Group cash flow statement for the year then ended; and
• the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information.
Certain required disclosures have been presented elsewhere in the Annual Report, rather than in the notes to the financial
statements. These are cross-referenced from the financial statements and are identified as audited.
The financial reporting framework that has been applied in the preparation of the Group financial statements is IFRSs as adopted by
the European Union, and applicable law. The financial reporting framework that has been applied in the preparation of the Company
financial statements is United Kingdom Accounting Standards, comprising FRS 101 ‘Reduced disclosure framework’, and applicable
law (United Kingdom Generally Accepted Accounting Practice).
Our audit approach
Overview
• Overall Group materiality: US$51m which represents 5% of the Group’s profit before tax.
• We conducted work on three full scope reporting units.
• These three reporting units, together with the corporate function and consolidation at the
Group level, where we also conduct audit procedures, accounted for 88% of the Group’s
revenue and 97% of the Group’s profit before tax.
• We focused on:
– Tax – uncertain tax positions and tax planning.
– Regulatory matters and litigation.
– Goodwill and intangible asset impairment assessment in respect of the Europe, Middle East
and Africa (‘EMEA’) and Asia Pacific cash generating units (‘CGUs’).
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 and Ireland)’).
We designed our audit by determining materiality and assessing the risks of material misstatement in the financial statements. In
particular, we looked at where the directors made subjective judgments, 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.
Materiality
Audit scope
Areas
of focus