We use a different level of materiality, performance materiality, to drive the extent of our testing and this was set
at 75% of financial statement materiality for the audit of the Group financial statements. We also determine a lower
level of specific materiality for certain areas such as directors' remuneration and related party transactions.
We determined the threshold at which we will communicate misstatements to the audit committee to be €85,000.
in addition we will communicate misstatements below that threshold that, in our view, warrant reporting on
overview of the scope of our audit
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to
give reasonable assurance that the financial statements are free from material misstatement, whether caused by
fraud or error. this includes an assessment of: whether the accounting policies are appropriate to the group's
circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant
accounting estimates made by the directors; and the overall presentation of the financial statements. in addition,
we read all the financial and non-financial information in the annual report to identify material inconsistencies
with the audited financial statements and to identify any information that is apparently materially incorrect based
on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. if we become
aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
We conducted our audit in accordance with international standards on auditing (isas) (uK and ireland). our
responsibilities under those standards are further described in the 'responsibilities for the financial statements
and the audit' section of our report. We believe the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
We are independent of the Group in accordance with the auditing practices Board's ethical standards for auditors,
and we have fulfilled our other ethical responsibilities in accordance with those ethical standards.
our Group audit was scoped by obtaining an understanding of the Group and its environment, including Group-wide
controls, and assessing the risks of material misstatement at the Group level. the Group's activities are spread
across 57 wholly owned statutory entities. the components of the Group were evaluated by the Group audit team
based on a measure of materiality, considering each as a percentage of total Group assets, revenues and earnings
before tax, to assess the significance of each component and to determine the planned audit response.
for those components that were deemed significant either a full scope, targeted or analytical audit approach was
determined based on their relative materiality to the Group and our assessment of audit risk. for significant
components requiring a full scope approach we evaluated and tested controls over the financial reporting systems
identified as part of our risk assessment, reviewed the accounts production process and addressed critical
Based on this assessment we focused on the Group's operations based in the uK, ireland and malta, which were
subject to a full audit for the year ended 31 december 2015. We used a Grant thornton network member firm to
complete the audit work of the operations in malta under our supervision and review. the remaining entities were
subject to a targeted or analytical approach. our audit was executed at levels of materiality applicable to each
individual entity which were lower than Group materiality and ranged from €1,275k to €1,700k. at the parent entity
level we performed audit procedures on material transactions and consolidation adjustments.
as a consequence of the audit scope determined, we achieved full scope coverage of 100% of the Group's revenue,
99% of the Group's net assets, 100% of the Group's profit making components and 92% of the Group's loss making
as the Group's parent company is based in the isle of man we used a Grant thornton network member firm to
check the requirements of local isle of man statute had been met in the disclosures included in the annual report.
in the current year the Group audit team visited the operations in ireland and malta, due to their financial
significance to the Group.
44 GVC HOLDINGS PLC ANNUAL REPORT 2015
independent auditor's report to tHe memBers of
GVc HoldinGs plc continued