Unilever 2014 Annual Report Download - page 44
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Please find page 44 of the 2014 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.3 OUR APPLIATION OF MATERIALITY AND AN OVERVIEW OF THE SOPE OF OUR AUDIT
Materalty
Based on our professonal udgment the materalty for the onsoldated Fnancal Statements as a whole was set at 350 mllon,
determned wth reference to a benchmark of roup proft before taxaton (of whch t represents 46%) We also take
msstatements nto account that are n our opnon materal for qualtatve reasons
We agreed wth the Audt ommttee to report to t any corrected and uncorrected dentfed msstatements exceedng 25 mllon
n addton to other dentfed msstatements that warranted reportng on qualtatve grounds
Scope of our audt
The roup operates through a sgnfcant number of legal enttes, each of whch s a reportng component We performed audts for
roup reportng purposes of 13 components, as well as audts of revenue and the related accounts recevable balances at a further
5 components The latter were not ndvdually fnancally sgnfcant enough to requre an audt for roup reportng purposes but
were ncluded n the scope of our roup reportng work n order to provde further coverage over the roup’s revenue
The roup has 5 centralsed operatng centres that perform accountng and reportng actvtes alongsde related controls
Together these operatng centres process a substantal porton of the roup’s transactons The outputs from the centralsed
operatng centres are ncluded n the fnancal nformaton of the component enttes they servce and therefore they are not
separate reportng components Each of the operatng centres s subect to specfed audt procedures Further audt procedures
are performed at each reportng component to cover matters not covered at the centralsed operatng centres Together ths
results n audts for roup reportng purposes on those reportng components
The percentages of the roup’s Revenue, Proft before Taxaton and Total Assets represented by the components wthn the scope
of our work and procedures performed at corporate level are as follows
The remanng 37% of roup Revenue and 30% of roup Proft before Taxaton s represented by a sgnfcant number of out-of-
scope reportng components, none of whch ndvdually represents more than 2% of roup Revenue and/or roup Proft before
Taxaton A substantal porton of these out-of-scope components utlse the fve operatng centres and are therefore subect to
audt procedures performed at these operatng centres In addton, for these out-of-scope components, we performed analyss
(focusng specfcally on revenue and operatng margns) at the aggregated roup level to re-examne our assessment that there
are no sgnfcant rsks of materal msstatement wthn these components
For the n-scope components the roup audt team nstructed component audtors as to the sgnfcant areas to be covered,
ncludng the sgnfcant rsks detaled above and the nformaton to be reported back The roup audt team approved component
materalty levels, whch ranged from 5 mllon to 275 mllon, havng regard to the mx of sze and rsk profle of the roup
across the components The work on all components was performed by component audtors
The roup audt team vsted component locatons n the USA, the UK, the Netherlands, Inda, Indonesa, Swtzerland, Brazl, South
Afrca, ermany, Turkey, Russa, Sngapore, hna, Mexco and Argentna Telephone and/or onlne meetngs were also held wth the
audtors of these components and the maorty of all other components The fndngs reported to the roup audt team were dscussed
n more detal wth component audtors, and any further work requred by the roup audt team was then performed by the
component audtor
GROUP REVENUE
Audits for Group
Reporting
Purposes 51%
Audits of Account
Balance12%
Audits of Account
Balance13%
Out of Scope
Components37%
Audits for Group
Reporting
Purposes 75%
Audits of Account
Balance3%
Out of Scope
Components22%
Audits for Group
Reporting
Purposes 57%
Out of Scope
Components30%
GROUP TOTAL ASSETSGROUP PROFIT BEFORE TAXATION
81Unilever Annual Report and Accounts 2014 Financial statements