Page 119 - Loomis Annual Report 2017

Loomis Annual Report 2017 Auditor’s report 115
Auditor’s report (Translation of the Swedish original, for interpretation the Swedish version shall prevail) To the general meeting of the shareholders of Loomis AB (publ), corporate identity number 556620-8095
Report on the annual accounts and consolidated accounts
Opinions
We have audited the annual accounts and consolidated ac- counts of Loomis AB (publ) for the year 2017. The annual ac- counts and consolidated accounts of the company are included on pages 59-114 in this document.
In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the nancial position of parent compa- ny as of 31 December 2017 and its nancial performance and cash ow for the year then ended in accordance with the An- nual Accounts Act. The consolidated accounts have been pre- pared in accordance with the Annual Accounts Act and pre- sent fairly, in all material respects, the nancial position of the group as of 31 December 2017 and their nancial performance and cash ow for the year then ended in accordance with In- ternational Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. The statutory admi- nistration report is consistent with the other parts of the annu- al accounts and consolidated accounts.
Our statements in this report on the annual accounts are consistent with the content of the report which we have com- municated the audit committee of the parent company in ac- cordance with the EU audit regulation (537/2014) article 11.
We therefore recommend that the general meeting of sha- reholders adopts the statement of income and balance sheet for the parent company and the group.
Basis for Opinions
We conducted our audit in accordance with International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those stan- dards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise ful lled our ethical responsibi- lities in accordance with these requirements. This also con- rms that, to the best of our knowledge, no prohibited services as stipulated in the EU audit regulation (537/2014) article 5.1 has been provided to the audited company, or, when applica- ble, its parent company or controlled undertakings within EU.
We believe that the audit evidence we have obtained is su - cient and appropriate to provide a basis for our opinions.
Our audit approach
Audit scope
Loomis transport valuables and provide cash management services, both locally in the countries and internationally in the Segment International. Value transportation is called CIT (Cash In Transit) and the cash management services is called CMS (Cash Management Services). Within the CIT operation and International Loomis transport values and within Inter- national storage services are also part of the service. Based on
revenue CIT comprise about 63% of Loomis operations and International about 5%. CMS comprise about 32% and in this part of the business Loomis manages cash stock in their cash processing centers, were the stock is in all material aspects held in consignment. Loomis has about 400 branches, opera- tions in more than 20 countries and about 22.000 full time employees.
We designed our audit by determining materiality and as- sessing the risks of material misstatement in the consolidated nancial statements. In particular, we considered where mana- gement made subjective judgements; for example, in respect of signi cant accounting estimates that involved making assump- tions and considering future events that are inherently uncer- tain. As in all of our audits, we also addressed the risk of mana- gement override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform suf- cient work to enable us to provide an opinion on the consoli- dated nancial statements as a whole, taking into account the structure of the group, the accounting processes and controls, and the industry in which the group operates.
Main focus areas and risks identi ed are further detailed in the “Key Audit Matters” included below. Our activities in the audit of Loomis mainly consist of:
• Planning procedures and related activities.
• Follow up and assessment of current events and the nancial
reporting in connection to the second quarter closing.
• Procedures relating to internal control over nancial re- porting, routines procedures based on assessed risk and Loomis Internal Control Requirements (“ICR”), Loomis
framework for internal control over nancial reporting.
• Limited review procedures to issue a limited review report
for the third and fourth quarter closing 2017.
• Final audit procedures required to issue this auditors report
for the parent company and the group. In connection to this procedures needed to issue our statement on adherence to the guidelines for remuneration to group management.
The audit are primarily performed by audit teams which are part of the PwC network. Work is conducted in accordance with local audit requirements and speci c instructions and work programs. The auditor in charge and members of the group audit team have performed 6 country visits outside of Sweden during the year. During these visits activities relating to the local balance sheets and income statements, participa- tion in cash processing center cash stock count, discussions on internal control, routines and procedures and follow up to compliance to Loomis ICR, Loomis framework for internal control over nancial reporting, are performed.
The scope and extent of our audit procedures for Loomis cover all material units within the group which together repre- sent a signi cant part of revenues, earnings and assets.