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INDEPENDENT AUDITOR’S REPORT
to the Members of Kingspan Group plc (continued)
Conclusion
Based on the work we have performed,
we have not identified any material
uncertainties relating to events or
conditions that, individually or collectively,
may cast significant doubt on the Group
and Company’s ability to continue as
a going concern for a period of at least
twelve months from when the financial
statements are authorised for issue.
In relation to the Group and Company’s
reporting on how they have applied the
UK Corporate Governance Code, we
have nothing material to add or draw
attention to in relation to the directors’
statement in the financial statements
about whether the directors considered it
appropriate to adopt the going concern
basis of accounting.
Our responsibilities and the responsibilities
of the directors with respect to going
concern are described in the relevant
sections of this report. However, because
not all future events or conditions can
be predicted, this statement is not
a guarantee as to the Group’s and
Company’s ability to continue as a
going concern.
Overview of our audit approach
Key audit matters
g The key audit matters that we identified in the current year were:
» Warranty provisions
» Revenue recognition
» Accounting for significant acquisitions
g In the prior year, our auditor’s report included a key audit matter in relation to the assessment of the
carrying value of goodwill. In the current year, we have removed this risk of material misstatement as there is
significant headroom in all the Group’s Cash Generating Units (CGUs). Conversely, we identified accounting
for significant acquisitions as a separate key audit matter in the current year as a result of the Group’s
acquisition activity during the year.
Audit scope
g We performed an audit of the complete financial information of 29 components and performed audit
procedures on specific balances for a further 26 components
g We performed procedures at a further 22 components that were specified by the Group audit team in
response to specific risk factors
g The components where we performed full or specific audit procedures accounted for 83% of Profit before tax
from continuing operations, 73% of Revenue and 85% of Total Assets
g ‘Components’ represent business units across the Group considered for audit scoping purposes
Materiality
g Overall Group materiality was assessed to be €34.5 million which represents approximately 5% of Profit before
tax from continuing operations.
Kingspan Group plc Annual Report & Financial Statements 2021
Financial Statements
