Unilever 2015 Annual Report Download - page 94

3 OUR APPLIATION OF MATERIALITY AND AN OVERVIEW OF THE SOPE OF OUR AUDIT
Materalty
Based on our professonal udgement the materalty for the onsoldated Fnancal Statements as a whole was set at 350 mllon
(2014 350 mllon), determned wth reference to a benchmark of roup proft before taxaton (of whch t represents 48% (2014
46%)) We also take msstatements nto account that are n our opnon materal for qualtatve reasons
We agreed wth the Audt ommttee to report to t any corrected and uncorrected dentfed msstatements exceedng 25 mllon n
addton to other dentfed msstatements that warranted reportng on qualtatve grounds
Scope of our audt
The roup operates through a sgnfcant number of legal enttes, these form reportng components whch are prmarly based on
country To provde suffcent coverage over the roup’s sgnfcant rsks, we performed audts for roup reportng purposes of 13
components (2014 13 components), as well as audts of revenue and the related accounts recevable balances at a further 10
components (2014 5 components) The further 10 components were not ndvdually fnancally sgnfcant enough to requre an audt
for roup reportng purposes but were ncluded n the scope of our roup reportng work n order to provde further coverage over
the roup’s revenue
The roup has 5 centralsed operatng centres that perform accountng and reportng actvtes alongsde related controls Together
these operatng centres process a substantal porton of the roup’s transactons The outputs from the centralsed operatng
centres are ncluded n the fnancal nformaton of the component enttes they servce and therefore they are not separate reportng
components Each of the operatng centres s subect to specfed audt procedures Further audt procedures are performed at each
reportng component to cover matters not covered at the centralsed operatng centres Together ths results n audts for roup
reportng purposes on those reportng components
The percentages of the roup’s Revenue, Proft before Taxaton and Total Assets represented by the components wthn the scope of
our work and procedures performed at corporate level are as follows
The remanng 30% of roup Revenue and 25% of roup Proft before Taxaton s represented by a sgnfcant number of components,
‘Other omponents’ none of whch ndvdually represents more than 2% of roup Revenue and/or roup Proft before Taxaton
A substantal porton of these Other omponents utlse the fve operatng centres and are therefore subect to audt procedures
performed at these operatng centres In addton, for these Other omponents, we performed analyss (focusng specfcally on
revenue and operatng margns) at the aggregated roup level to re-examne our assessment that there are no sgnfcant rsks
of materal msstatement wthn these components
The roup audt team nstructed component audtors as to the sgnfcant areas to be covered, ncludng the sgnfcant rsks detaled
above and the nformaton to be reported back The roup audt team approved component materalty levels, whch ranged from
5 mllon to 275 mllon (2014 5 mllon to 275 mllon), havng regard to the mx of sze and rsk profle of the roup across the
components The work on all components was performed by component audtors
The roup audt team vsted locatons n the USA, Inda, Indonesa, Swtzerland, Brazl, South Afrca, Russa, Sngapore, hna,
Mexco, Thaland, Australa, Poland, Kenya, Phlppnes and Zmbabwe (2014 the USA, the UK, the Netherlands, Inda, Indonesa,
Swtzerland, Brazl, South Afrca, ermany, Turkey, Russa, Sngapore, hna, Mexco and Argentna) Telephone and/or onlne
meetngs were also held wth the audtors of these components and the maorty of all other components The fndngs reported
to the roup audt team were dscussed n more detal wth component audtors, and any further work requred by the roup audt
team was then performed by the component audtor
GROUP REVENUE
51%
(2014: 51%)
30%
(2014: 37%)
19%
(2014: 12%)
86%
(2014: 75%)
5%
(2014: 22%)
9%
(2014: 3%)
36%
(2014: 13%)
39%
(2014: 57%)
25%
(2014: 30%)
TOTAL ASSETS
Audits for Group Reporting Purposes Audits of Account Balances Other Components
GROUP PROFIT BEFORE TAXATION
87Unilever Annual Report and Accounts 2015 Financial statements