Page 56 - Paragon Annual Report 2

52 | Group financial statements
Independent auditor’s report (continued) to the members of Paragon Group Limited
Overview of our audit approach
Key audit matters
Audit scope
Materiality
We have identified the following key audit matters, which were of most significance to our audit. Significant risks.
• Improper revenue recognition
• Risk of impairment of intangible assets, including goodwill • Acquisitions and related intangibles
• We performed an audit of the complete financial information of Paragon Group Limited (Company).
• We performed an audit of the complete financial information of 16 components, audit procedures on specific balances for a further 5 components and review procedures on a further 10 components, in relation to the Group financial statements.
• The components where we performed full or specific audit procedures accounted for 74% of EBITDA* and 78% of Revenue.
• Overall group materiality of €1,250,000 (2016: €1,150,000) which represents 4.5% of EBITDA (2016: 5%)**.
*EBITDA is defined as earnings before interest, tax, depreciation and amortisation.
** The reduction in percentage of EBITDA used as the basis for materiality is as a result of the listing that took place in the year.
Paragon Group Limited – 05258175