RWS AR 23 Final Single pages - Flipbook - Page 104
Independent Auditors' Report to the Members of
RWS Holding plc (continued)
AN OVERVIEW OF THE SCOPE OF THE PARENT COMPANY AND GROUP
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality
and our allocation of performance materiality determine
our audit scope for each company within the Group.
Taken together, this enables us to form an opinion on the
consolidated 昀椀nancial statements. We take into account
size, risk pro昀椀le, the organisation of the group and
e昀昀ectiveness of group-wide controls and changes in the
business environment when assessing the level of work to
be performed at each company.
In assessing the risk of material misstatement to the Group
昀椀nancial statements, and to ensure we had adequate
quantitative coverage of signi昀椀cant accounts in the 昀椀nancial
statements, of the reporting components of the Group, we
selected 13 components covering entities within the UK,
US, Czech Republic and EMEA which represent the principal
business units within the Group.
Of the 13 components selected, we performed an audit
of the complete 昀椀nancial information of 8 components
(“full scope components”) which were selected based
on their size or risk characteristics. For the remaining 5
components (“speci昀椀c scope components”), we performed
audit procedures on speci昀椀c accounts within that
component that we considered had the potential for the
greatest impact on the signi昀椀cant accounts in the 昀椀nancial
statements either because of the size of these accounts or
their risk pro昀椀le.
The reporting components where we performed audit
procedures accounted for 74% (2022: 72%) of the Group’s
loss before tax adjusted for exceptional items, impairment
losses, acquisition costs and amortisation of acquired
intangibles, 87% (2022: 87%) of the Group’s Revenue
and 92% (2022: 96%) of the Group’s Total assets. For the
current year, the full scope components contributed 71%
(2022: 65%) of the Group’s loss before tax adjusted for
exceptional items, impairment losses, acquisition costs and
amortisation of acquired intangibles, 77% (2022: 76%) of
the Group’s Revenue and 91% (2022: 94%) of the Group’s
Total assets. The speci昀椀c scope components contributed
3% (2022: 7%) of the Group’s loss before tax adjusted for
exceptional items, impairment losses, acquisition costs
and amortisation of acquired intangibles, 10% (2022: 11%)
of the Group’s Revenue and 1% (2022: 2%) of the Group’s
Total assets. The audit scope of these components may
not have included testing of all signi昀椀cant accounts of
the component but will have contributed to the coverage
of signi昀椀cant accounts tested for the Group. We also
instructed 1 location (Czech Republic) to perform speci昀椀ed
procedures over certain aspects of capitalised development
costs, as described in the Risk section above.
Of the remaining components that together represent
26% of the Group’s loss before tax adjusted for exceptional
items, impairment losses, acquisition costs and
104
RWS Holdings plc — Annual Report 2023 FINANCIAL STATEMENTS
amortisation of acquired intangibles, none are individually
greater than 5% of the Group’s loss before tax adjusted
for exceptional items, impairment losses, acquisition
costs and amortisation of acquired intangibles. For these
components, we performed other procedures, including
analytical review and/or ‘review scope’ procedures, testing
of consolidation journals and intercompany eliminations
and foreign currency translation recalculations to respond
to any potential risks of material misstatement to the Group
昀椀nancial statements.
The charts below illustrate the coverage obtained from
the work performed by our audit teams.
Loss before tax adjusted for
exceptional items, impairment losses,
acquisition costs and amortisation of
acquired intangibles
71%
Full scope
components
3%
Speci昀椀c scope
components
26%
26 %
3%
Other procedures
Total assets
91%
Full scope
components
1%
Speci昀椀c scope
components
8%
Other procedures
71%
1%
8%
91%
Revenue
13%
77% Full scope
components
10%
Speci昀椀c scope
components
13%
Other procedures
10 %
77%
