Staatsolie Annual Report 2017
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Confidence in Our Own Abilities<br />
26<br />
<strong>Report</strong> on the Audit of the Consolidated Financial Statements<br />
(Continued)<br />
Key audit matters<br />
(Continued)<br />
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the<br />
consolidated financial statements section of our report, including in relation to these matters.<br />
Key audit matter<br />
How our audit addressed the key audit matter<br />
Initial audit engagement - Transition plan<br />
Initial audits include a number of elements which<br />
are not performed in recurrent audits conducted<br />
on a regular basis. These additional procedures<br />
include in particular planning activities which<br />
are intended to enable an appropriate audit<br />
strategy to be determined for the consolidated<br />
financial statements.<br />
The consolidated financial statements of the<br />
Group for the year ended 31 December 2015<br />
was prepared, in accordance USGAAP, and<br />
were audited by another auditor who expressed<br />
an unmodified opinion on those statements.<br />
This has been discussed in the Other Matter<br />
paragraph above.<br />
After being appointed as the Group’s auditors in<br />
2018, we developed a comprehensive transition<br />
plan to ensure an effective transition from the<br />
predecessor auditor. In order to develop an<br />
appropriate audit strategy and audit plan in the<br />
initial audit engagement for the Group, specific<br />
planning activities were necessary. These<br />
included, but were not limited, to:<br />
• Obtaining an initial understanding of<br />
the Group and its business including<br />
background information, strategy, business<br />
risks, information technology landscape<br />
and its financial reporting and internal<br />
controls framework, to assist in performing<br />
risk assessment procedures;<br />
• Obtaining sufficient appropriate audit<br />
evidence regarding opening balances and<br />
the appropriate selection and consistent<br />
application of accounting policies; and<br />
• Communicating with the predecessor<br />
auditor, including reviews of audit<br />
working papers for previous periods;<br />
and performance of analyses in order<br />
to evaluate the assumptions made by<br />
management in the previous financial year.<br />
The foregoing has been used as a basis for our<br />
audit plan. We discussed and agreed our audit<br />
plan with the Supervisory Board of the Group<br />
in 2018 and have reported status updates,<br />
progress reports and key findings from our audit<br />
process on a regular basis.