Page 189 - KELAG Annual Report 2019
P. 189

is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
                misrepresentations or override of internal control.
               We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
                appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's
                internal control.
               We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
                related disclosures made by management.
               We conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the
                audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
                doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
                required to draw attention in our audit report to the respective note in the consolidated financial statements. If such
                disclosures are not appropriate, we will modify our audit opinion. Our conclusions are based on the audit evidence
                obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to
                continue as a going concern.
               We evaluate the overall presentation, structure and content of the consolidated financial statements, including the
                notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner
                that achieves fair presentation.
               We obtain sufficient appropriate audit evidence regarding the financial information of the entities and business
                activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the
                direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
               We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of our
                audit as well as significant findings, including any significant deficiencies in internal control that we identify during our
               We communicate to the audit committee that we have complied with the relevant professional requirements in respect
                of our independence, that we will report any relationships and other events that could reasonably affect our
                independence and, where appropriate, the related safeguards.
               From the matters communicated with the audit committee, we determine those matters that were of most significance
                in the audit i.e. key audit matters. We describe these key audit matters in our auditor’s report unless laws or other legal
                regulations preclude public disclosure about the matter or when in very rare cases, we determine that a matter should
                not be included in our audit report because the negative consequences of doing so would reasonably be expected to
                outweigh the public benefits of such communication.

           In accordance with Austrian company law, the group management report is to be audited as to whether it is consistent
           with the consolidated financial statements and prepared in accordance with legal requirements.
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