RWS Annual Report 2022 web - Flipbook - Page 99
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 firms 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 specific scope components
were audited by the primary team.
During the current year’s audit cycle, a visit was
undertaken by the primary audit team to the component
team in the Czech Republic. This involved a combination of
site visit, review of the component team’s audit work and
meeting with business unit management. The primary
team interacted regularly with the component teams
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 financial statements.
CLIMATE CHANGE
There has been increasing interest from stakeholders
as to how climate change will impact RWS Holdings plc.
The Group has determined that the most significant
future impacts from climate change on their operations
will be from business interruption driven by extreme
climate. These are explained on page 46 in the
principal risks and uncertainties, which form part of the
“Other information,” rather than the audited financial
statements. Our procedures on these disclosures
therefore consisted solely of considering whether they
are materially inconsistent with the financial statements
or our knowledge obtained in the course of the audit or
otherwise appear to be materially misstated.
As explained in Note 1, the impact of climate change 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 financial 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 flows under the requirements of UK adopted
International Accounting Standards (‘IFRS’).
Our audit effort in considering climate change was
focused on evaluating management’s assessment of
the impact of climate risk, physical and transition, and
ensuring that the effects of climate risks disclosed
on page 52 do not have a material impact on the
financial statements. We also challenged the Directors’
considerations of climate change in their assessment of
going concern and viability and associated disclosures.
Whilst the Group have stated their commitment to
the aspirations of the Paris Agreement to achieve net
zero emissions by 2050, the Group is currently unable
to determine the full future economic impact on their
business model, operational plans and customers to
achieve this and therefore as set out above the potential
impacts are not fully incorporated in these financial
statements.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the
overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team. These
matters were addressed in the context of our audit of the financial statements as a whole, and in our opinion thereon,
and we do not provide a separate opinion on these matters.
INDEPENDENT AUDITOR’S REPORT
RWS — Annual Report 2022
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