RWS AR 23 Final Single pages - Flipbook - Page 105
CHANGES FROM THE PRIOR YEAR
The changes in in-scope components year on year are
as a result of two former speci昀椀c scope components
reducing in scope, as a result of reduced contribution to
the total Group balances. This was o昀昀set by the inclusion
of an additional speci昀椀c scope component arising from
acquisition in the previous year.
INVOLVEMENT WITH COMPONENT
TEAMS
In establishing our overall approach to the Group
audit, we determined the type of work that needed to
be undertaken at each of the components by us, as
the primary audit engagement team, or by component
auditors from other EY global network 昀椀rms operating
under our instruction. Of the 8 full scope components,
audit procedures were performed on 7 of these directly
by the primary audit team. All speci昀椀c scope components
were audited by the primary team.
During the current year’s audit cycle, the component
team based in the Czech Republic visited the primary
audit team in the UK. This visit included attending
group-wide planning meetings and reviewing relevant
working papers. In addition, the primary team interacted
regularly with the component team where appropriate
during various stages of the audit, reviewed relevant
working papers and were responsible for the scope and
direction of the audit process. This, together with the
additional procedures performed at Group level, gave
us appropriate evidence for our opinion on the Group
昀椀nancial statements.
As explained in note 1, the basis of preparation,
consideration of climate change impact on the
judgements in the accounts is not considered to have
a material impact at this time. Governmental and
societal responses to climate change risks are still
developing, and are interdependent upon each other,
and consequently 昀椀nancial statements cannot capture
all possible future outcomes as these are not yet known.
The degree of certainty of these changes may also
mean that they cannot be taken into account when
determining asset and liability valuations and the timing
of future cash 昀氀ows under the requirements of UK
adopted International Accounting Standards (‘IFRS’).
Our audit e昀昀ort in considering climate change was
focused on evaluating management’s assessment of
the impact of climate risk, physical and transition, their
climate commitments, and con昀椀rming the e昀昀ects of
material climate risks disclosed do not have a material
impact on the 昀椀nancial statements. As part of this
evaluation, we performed our own risk assessment
to determine the risks of material misstatement in
the 昀椀nancial statements from climate change which
needed to be considered in our audit.
We also challenged the Directors’ considerations
of climate change risks in their assessment of
going concern and associated disclosures. Where
considerations of climate change were relevant to our
assessment of going concern, these are described
above.
Based on our work we have not identi昀椀ed the impact of
climate change on the 昀椀nancial statements to be a key
audit matter or to impact a key audit matter.
CLIMATE CHANGE
KEY AUDIT MATTERS
Stakeholders are increasingly interested in how climate
change will impact RWS Holdings plc. The Group has
determined that the most signi昀椀cant future impacts
from climate change on their operations will be from
business interruption driven by extreme climate. These
are explained on pages 48 to 59 in the required Task
Force for Climate related Financial Disclosures and on
pages 44 to 47 in the principal risks and uncertainties. All
of these disclosures form part of the “Other information,”
rather than the audited 昀椀nancial statements. Our
procedures on these unaudited disclosures therefore
consisted solely of considering whether they are
materially inconsistent with the 昀椀nancial statements or
our knowledge obtained in the course of the audit or
otherwise appear to be materially misstated, in line with
our responsibilities on “Other information”.
Key audit matters are those matters that, in our
professional judgment, were of most signi昀椀cance in
our audit of the 昀椀nancial statements of the current
period and include the most signi昀椀cant assessed risks
of material misstatement (whether or not due to fraud)
that we identi昀椀ed. These matters included those which
had the greatest e昀昀ect on: the overall audit strategy, the
allocation of resources in the audit; and directing the
e昀昀orts of the engagement team. These matters were
addressed in the context of our audit of the 昀椀nancial
statements as a whole, and in our opinion thereon, and
we do not provide a separate opinion on these matters.
In planning and performing our audit we assessed the
potential impacts of climate change on the Group’s
business and any consequential material impact on its
昀椀nancial statements.
FINANCIAL STATEMENTS RWS Holdings plc — Annual Report 2023
105
