Introduction / Group review and markets / Business lines / Governance / Financial statements
Annual Report 2022 NKT A/S 102
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enable the preparation of consolidated financial
statements and parent financial statements that
are free from material misstatement, whether due
to fraud or error.
influence the economic decisions of users taken
Conclude on the appropriateness of Man-
agement’s use of the going concern basis
of accounting in preparing the consolidated
financial statements and the parent financial
statements, 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
and the Parent’s ability to continue as a
the direction, supervision and performance of
the group audit. We remain solely responsible
for our audit opinion.
on the basis of these consolidated financial state-
ments and these parent financial statements.
As part of an audit conducted in accordance
with ISAs and the additional requirements
applicable in Denmark, we exercise professional
judgement and maintain professional scepticism
throughout the audit. We also:
We communicate with those charged with
governance regarding, among other matters,
the planned scope and timing of the audit and
significant audit findings, including any significant
deficiencies in internal control that we identify
during our audit.
In preparing the consolidated financial state-
ments and the parent financial statements, Man-
agement is responsible for assessing the Group’s
and the Parent’s ability to continue as a going
concern, for disclosing, as applicable, matters
related to going concern, and for using the going
concern basis of accounting in preparing the
consolidated financial statements and the parent
financial statements unless Management either
intends to liquidate the Group or the Entity or to
cease operations, or has no realistic alternative
but to do so.
going concern. If we conclude that a material
uncertainty exists, we are required to draw
attention in our auditor’s report to the related
disclosures in the consolidated financial state-
ments and the parent financial statements or,
if such disclosures are inadequate, to modify
our 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 and the Enti-
ty to cease to continue as a going concern.
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Identify and assess the risks of material
misstatement of the consolidated financial
statements and the parent financial state-
ments, whether due to fraud or error, design
and perform audit procedures responsive to
those risks, and obtain audit evidence that is
sufficient 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, inten-
tional omissions, misrepresentations, or the
override of internal control.
We also provide those charged with governance
with a statement that we have complied with
relevant ethical requirements regarding inde-
pendence, and to communicate with them all
relationships and other matters that may reason-
ably be thought to bear on our independence,
and, where applicable, safeguards put in place
and measures taken to eliminate threats.
Auditor's responsibilities for the audit
of the consolidated financial statements
and the parent financial statements
From the matters communicated with those
charged with governance, we determine those
matters that were of most significance in the
audit of the consolidated financial statements
and the parent financial statements of the current
period and are therefore the key audit matters.
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Our objectives are to obtain reasonable assur-
ance about whether the consolidated financial
statements and the parent financial statements
as a whole are free from material misstatement,
whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Rea-
sonable 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
Evaluate the overall presentation, structure and
content of the consolidated financial state-
ments and the parent financial statements,
including the disclosures in the notes, and
whether the consolidated financial statements
and the parent financial statements represent
the underlying transactions and events in a
manner that gives a true and fair view.
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Obtain an understanding of internal con-
trol 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 and the Parent’s internal control.
We describe these matters in our auditor’s report
unless law or regulation precludes public dis-
closure about the matter or when, in extremely
rare circumstances, we determine that a matter
should not be communicated in our report
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Obtain sufficient appropriate audit evidence
regarding the financial information of the
entities or business activities within the Group
to express an opinion on the consolidated
financial statements. We are responsible for
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Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by Management.
because the adverse consequences of doing so
would reasonably be expected to outweigh the
public interest benefits of such communication.
