
In addition, we applied data analysis in our testing of revenue transactions in
order to identify and assess transactions outside the ordinary transaction flow.
Deferred tax assets and income tax positions
The Group operates in many territories and is, consequently, subject to local
laws and cross-border transfer pricing legislation, which complicates the
Group’s tax matters, and which gives rise to provisions for income tax positions.
The Group also carries significant deferred tax assets that consist primarily
of tax on provisions made at the balance sheet date and tax loss carryfor-
wards. The utilisation of tax losses and tax amortisation balances is, inher-
ently, uncertain, as it is dependent on the financial development of business
activities in certain countries and regions.
We focused on this area because the valuation of deferred tax assets and
provisions for income tax positions are subject to significant Management
estimates, including Management’s applied model, data and assumptions.
Reference is made to note 5.2 to the Consolidated Financial Statement
How our audit addressed the key audit matter
Our audit procedures included considering the appropriateness of the
accounting policies and valuation models within the tax accounting area
and assessing compliance with applicable IFRS Accounting Standards, in-
cluding disclosure requirements.
We also assessed Management’s process for identifying and assessing
complex income tax transactions as well as deferred tax assets that might
not be recoverable.
We tested provisions made for income tax positions. As part of this, we re-
viewed correspondence with tax authorities and discussed methods and data
applied as well as assumptions made by Management, and assessed whether
they are adequate. In doing so, we used our internal corporate tax specialists.
Moreover, we tested Management’s assessment of the recoverability of
the carrying value of deferred tax assets arising from temporary differ-
ences and tax loss carryforwards on the basis of internal forecasts of
future taxable income, and evaluated the assumptions made by Man-
agement in this connection.
Statement on Management’s Commentary
Management is responsible for Management’s Commentary. Our opinion on
the Financial Statements does not cover Management’s Commentary, and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility
is to read Management’s Commentary and, in doing so, consider whether
Management’s Commentary is materially inconsistent with the Financial
Statements or our knowledge obtained in the audit, or otherwise appears
to be materially misstated.
Moreover, we considered whether Management’s Commentary includes
the disclosures required by the Danish Financial Statements Act and Article
8 of Regulation (EU) 2020/852 (EU Taxonomy Regulation).
Based on the work we have performed, in our view, Management’s Com-
mentary is in accordance with the Consolidated Financial Statements and
the Parent Company Financial Statements and has been prepared in accord-
ance with the requirements of the Danish Financial Statements Act and the
disclosure requirements of Article 8 of Regulation (EU) 2020/852 (EU Tax-
onomy Regulation). We did not identify any material misstatement in Man-
agement’s Commentary.
Management’s responsibilities for the Financial Statements
Management is responsible for the preparation of consolidated financial
statements and parent company financial statements that give a true and
fair view in accordance with IFRS Accounting Standards as issued by the
International Accounting Standards Board (‘IASB’) and in accordance with
IFRS Accounting Standards as adopted by the EU and further require-
ments in the Danish Financial Statements Act, and for such internal con-
trol as Management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the Financial Statements, Management is responsible for
assessing the Group’s and the Parent Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless Management ei-
ther intends to liquidate the Group or the Parent Company or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the
Financial Statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that in-
cludes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs and
the additional requirements applicable in Denmark will always detect a
material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of
users taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the additional require-
ments applicable in Denmark, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Financial
Statements, whether due to fraud or error, design and perform audit pro-
cedures responsive to those risks, and obtain audit evidence that is suffi-
cient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intention-
al omissions, misrepresentations, or the override of internal control;
• Obtain an understanding of internal control relevant to the audit in
order to design audit procedures that are appropriate in the circum-
stances, but not for the purpose of expressing an opinion on the ef-
fectiveness of the Group’s and the Parent Company’s internal control;
• Evaluate the appropriateness of accounting policies used and the rea-
sonableness of accounting estimates and related disclosures made by
Management;
92 DSV Annual Report 2023 Statements