Annual report and accounts 2023 - Flipbook - Page 135
Strategic Report
Corporate Governance
Accounts
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected and undetected misstatements exceed the materiality
for the financial statements as a whole.
Group financial statements
Parent company financial statements
Performance materiality 70% (2022: 70%) of group materiality
70% (2022: 70%) of parent company materiality
Basis and rationale for
In determining performance materiality, we considered the following factors:
determining
• Our risk assessment, including our assessment of the group’s overall control environment and that we considered it appropriate to rely on
performance materiality
controls over a number of business processes.
• Our past experience of the audit, and our consideration of the number of corrected and uncorrected misstatements identified in prior periods.
6.3. Error reporting threshold
We agreed with the Audit and Risk Committee that we would report to the Committee all audit differences in excess of £111,000 (2022: £103,500), as well as differences
below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit and Risk Committee on disclosure matters that we identified
when assessing the overall presentation of the financial statements.
7.
An overview of the scope of our audit
7.1. Identification and scoping of components
There are no significant changes in our approach in the current year with the exception of our approach to Funkin Limited, a component which has increased in scope to full
scope in light of its overall contribution to the group. Our group audit was scoped by obtaining an understanding of the Group and its environment through discussions with
finance, IT, commercial and supply teams and performing walkthroughs of processes across these areas, including Group wide controls, and assessing the risks of material
misstatements at a Group level.
For components deemed significant to the group, full scope audit procedures were performed to materiality levels applicable to each component, which was lower than the
group materiality level and ranged from £0.76m to £1.96m (2022: £0.51m to £1.89m). Components deemed significant are as follows:
• A.G. Barr p.l.c.
• Funkin Limited
A.G. Barr p.l.c., is also the entity in which the trading transactions relating to the brand owned by Rubicon Drinks Limited are recorded.
Boost Drinks Limited was subject to specified audit procedures based on the materiality of individual balances, and the remaining non-significant components were subject to
analytical reviews, the group audit team performed all audit work. The other components to the Group are as follows:
• Funkin USA Limited
• A.G. BARR General Partner Limited
• A.G. BARR Capital Partner Limited
• A.G. BARR (Ireland) Limited
• MOMA Foods Limited
2% 3%
Revenue
95%
3%
2% 0%
Profit
before tax
Net assets
97%
98%
Full audit scope
Specified audit procedures
Review at group level
At the Group level, we also tested the consolidation process. All work on the
significant components and consolidation process was performed by the Group
engagement team.
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