Page 54 - Beeks Financial Cloud Group Annual Report 2021

52 Beeks Financial Cloud Group PLC For the year ended 30 June 2021

Independent Auditors’ Report to the members of Beeks Financial Cloud Group PLC

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 Country of incorporation

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 £174,000, which represents approximately 1.5% of the Group’s revenue.

Significant judgements In determining materiality, we made the following significant judgements:
made by auditor in We considered revenue to be the most appropriate benchmark given the
determining the materiality Group’s focus on driving revenue growth for the stakeholders.
Materiality for the current year is higher than the level that we determined
for the year ended 30 June 2020 to reflect an increase in revenue across the
group as a whole, including a full year of revenue from Velocimetrics Limited.
GOVERNANCE
Performance materiality We set performance materiality at an amount less than materiality for the
used to drive the extent of financial statements as a whole to reduce to an appropriately low level the
our testing probability that the aggregate of uncorrected and undetected misstatements
exceeds materiality for the financial statements as a whole.

Performance £121,800, which is 70% of financial statement materiality.
Materiality threshold

Significant judgements In determining performance materiality, we made the following significant
made by auditor in judgements:
determining the 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.

Specific materiality We determine specific materiality for one or more particular classes of
transactions, account balances or disclosures for which misstatements of
lesser amounts than materiality for the financial statements as a whole
could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial statements.

Specific materiality We determined a lower level of specific materiality for the following areas:
/ Directors’ remuneration; and
/ Related party transactions.