Page 101 - Beeks Financial Cloud Group Annual Report 2021

Beeks Financial Cloud Group PLC
Independent Auditors’ Report to the members of Beeks Financial Cloud PLC For the year ended 30 June 2021

OUR APPLICATION OF MATERIALITY
We apply the concept of materiality both in planning and performing the audit, and in evaluating the effect of
identified misstatements on the audit and of uncorrected misstatements, if any, on the financial statements and in
forming the opinion in the auditor’s report.

Materiality was determined as follows:

Materiality measure Parent Company

Materiality for financial We define materiality as the magnitude of misstatement in the financial
statements as a whole statements that, individually or in the aggregate, could reasonably be
expected to influence the economic decisions of the users of these
financial statements. We use materiality in determining the nature, timing
and extent of our audit work.

Materiality threshold £114,000, which represents 1% of the parent company’s total assets at the
planning stage of the audit. We chose not to revise our materiality during
the course of the audit once the final total assets figure, which was higher,
was known.

Significant judgements In determining materiality, we made the following significant judgements:
made by auditor in
determining the materiality We considered total assets to be the most appropriate benchmark given
that the parent company does not trade and its primary purpose is that of
holding investments for the group.

Materiality for the current year is higher than the level that we determined FINANCE
for the year ended 30 June 2020 to reflect the increase in total assets,
particularly in intercompany receivables and cash, at the year end.

Performance materiality We set performance materiality at an amount less than materiality for
used to drive the extent of the financial statements as a whole to reduce to an appropriately low
our testing level the probability that the aggregate of uncorrected and undetected
misstatements exceeds materiality for the financial statements as a whole.

Performance materiality £79,800, which is 70% of financial statement materiality.
threshold

Significant judgements In determining performance materiality, we made the following significant
made by auditor judgements:
in determining the
performance materiality We considered 70% of financial statement materiality to be appropriate for
performance materiality given the AIM listed status of the business. Prior
year unadjusted errors have also been considered, however these have
historically been immaterial individually and in aggregate. The internal
control environment is dependent upon a sufficiently sized and qualified
finance team which is considered appropriate for the current size and scale of
the business, which is further supported through robust Board oversight.

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