D ec en t r al i s e d o p er at i o n s T h e K ey au d i t m at t er H ow t he m a t t e r wa s a ddr e s s e d i n o ur a udi t The G r oup c om p r i s e s m or e t ha n 150 s ub s i di a r i es a nd a s s o c i a t es c om ponen t s w hos e ope r a t i ons e xt e n d a cr o ss t he w or l d The G r oup s bus i nes s i s a na l y t i c a l t e s t i ng a nd t he i ndi v i dua l c om ponen t s a r e w i de r a ngi ng i n s i z e c us t o m er b a s e a nd t y pe of s er v i c e pr o v i ded The dec ent r a l i s ed a nd v a r i ed na t ur e of t hes e oper a t i on s r equi r e s i gni f i c a nt ov er s i ght b y t he G r oup t o m oni t or t he a c t i v i t i es r ev i ew c om ponen t f i na nc i a l r epor t i ng a nd u nder t a k e t he G r oup c ons ol i da t i on Thi s i s a n e x t ens i v e pr o c es s due t o t he hi gh num ber of a c c ount i n g s y s t e m s u s ed i n t he G r oup Thi s w a s a k e y a udi t m a t t er f or us gi v en t he l a r ge num ber of s ub s i di a r i es a nd a s s o c i a t e s a nd t h e hi gh num ber o f a c c ount i ng s y s t e m s w hi c h r e s ul t ed i n s i gni f i c a nt a udi t ef f or t b y u s W e f oc u s ed on U nder s t a ndi ng t he c o m pone nt s a nd i dent i f y i ng t h e si g n i f i can t r i sk s o f m a t e r i al m i sst at e m e n t w i t hi n t hem The s c opi ng of r el ev a nt pr o c edur es c on s ist e n t w i t h t he r i s k i dent i f i ed The a s s e s s m ent o f t he c om ponen t s c om pl i a nc e w i t h G r oup a c c o unt i ng pol i c i es The a s s e s s m ent o f t he r es ul t s of p r oc edu r es per f or m ed by c om ponen t a u di t t ea m s a nd The c ons ol i da t i on a nd r epor t i ng pr o ce ss O ur pr o c edur e s i nc l uded W e i ns t r u c t ed s el ec t ed c om ponent a udi t t ea m s t o per f or m pr o c edur e s on t he f i n a nc i a l i nf or m a t i on pr ep a r ed f or c on s ol i da t i on pur pos e s The s el ec t ed c om ponent s w e r e t hos e o f m o s t s i gni f i c a n c e t o t he a udi t o f t he G r oup ei t her by i ndi v i dua l s i z e or by r i s k t o th e G r oup pl us a s a m pl e on a r ot a t i on a l ba s i s o f t he r em a i ni ng c om ponen t s not m eet i ng t he s i z e a nd r i s k c r i t er i a The obj ec t i v e of t hi s a ppr o a c h w a s t o ga t her e v i d enc e on s i gni f i c a n t ba l a nc e s t ha t c ons ol i da t e t o f or m t he G r oup s f i na nc i a l r epo r t i ng T he c om ponen t a udi t t ea m s per f or m ed pr oc edur e s on t he f i na nc i a l i nf or m a t i on pr epa r ed f o r c ons ol i da t i on pur pos es W e w or k ed w i t h t he c om pone nt a udi t t ea m s t o under s t a nd t he c om ponen t s i dent i f y r i s k s s i gni f i c a nt t o t he a udi t of t h e G r oup a nd pl a n r e l e van t p r o c edur e s W e ev a l ua t ed t he w or k p er f or m ed b y t he c om ponent a udi t t e a m s f or our pur po s es W e di d t hi s by w or k i ng w i t h c om ponent a udi t t ea m s t o i dent i f y a nd a ddr es s m a t t er s a s t hey a r o s e dur i ng t he a udi t W e a l s o a s s e s s ed c om ponent a udi t t ea m s r ep or t i ng t o us on t he c om ponent s r e s ul t s a nd c o m pl i a nc e w i t h t he G r oup s a c c ount i ng pol i c i es W e di s c us s ed t he obs e r v a t i ons a nd f i ndi ngs f r om t he c o m ponent a udi t or s pr o c edur e s a nd i ns pec t ed s el ec t ed c om pon ent a udi t or s w or k pa per s W e t e s t ed t he f i na nc i a l d a t a u s ed i n t he c ons ol i da t i on p r oc e s s f o r c o ns i s t en c y w i t h t h e f i na nc i a l da t a a u di t ed by c om ponent a udi t t ea m s W e a l s o a s s e s s ed t he c ons ol i da t i on pr oc e s s f or c o m pl i a nc e w i t h a c c oun t i ng s t a nda r ds For t he ot her c o m ponent s not w i t hi n t he a bov e s c ope w e per f or m e d an al yt i cal p r o ce d u r e s t o deepen our under s t a n di ng of t hes e c om ponent s c or r obo r a t e our s c opi ng dec i s i ons a nd a na l y s e f i n a n c i a l i nf or m a t i on I n o u r an al yt i cal p r o ce d u r e s w e co m p ar e d a ct u al f i na nc i a l per f o r m a nc e t o t he pr i or y ea r r e s ul t s w e enqui r ed of G r oup a nd c o m ponent m a n a gem ent a nd c ons i der ed t he s e r e s ul t s a ga i ns t our e x pec t a t i ons O t he r i nf or m a t i on O t her I n f or m a t i on i s f i na nc i a l a nd non f in a n c ia l in f o r m a t io n in A LS Li m i t ed s a nnu a l r e por t i ng w hi c h i s pr ov i ded i n a ddi t i on t o t he Fi na nc i a l R epor t a nd t he A udi t or s R epor t The D i r ec t or s a r e r es pon s i bl e f or t he O t he r I nf o r m a t i on O ur opi ni on on t he Fi na n c i a l R epor t does no t c o v er t he O t her I nf o r m a t i on a nd a c c or di ngl y w e do n o t ex pr e s s a n a udi t opi ni on or a ny f or m of a s s ur a nc e c on c l us i on t her eon w i t h t he e x c ep t i on of t he R em uner a t i on R epor t a nd ou r r el a t ed a s s ur a n c e opi ni on I n c onnec t i on w i t h our a udi t of t he Fi na n c i a l R epor t our r es pons i bi l i t y i s t o r e a d t he O t her I nf o r m a ti on I n doi ng s o w e c on s i der w het her t he O t he r I nf or m a t i on i s m a t er i a l l y i nc on s i s t ent w i t h t he Fi na nc i a l R epor t or our k now l edge obt a i ned i n t he a udi t or o t her w i s e a ppe a r s t o be m a t er i a l l y m i s s t a t ed W e a r e r equi r ed t o r epo r t i f w e c onc l ude t h a t t her e i s a m a te ri a l m i s s t a te m e n t o f th i s O th e r I n fo rm a ti o n a nd ba s ed on t he w o r k w e h a v e pe r f or m ed on t he O t he r I nf or m a t i on t h a t w e obt a i ned pr i or t o t he d a t e of t hi s A udi t or s R epor t w e h a v e no t hi ng t o r epor t R es p o n s i b i l i t i es o f t h e D i r e c t o r s f o r t h e Fi n a n c i al R e p or t The D i r ec t o r s a r e r e s pon s i bl e f or pr epa r i ng t he Fi n a nc i a l R epo r t t h a t gi v e s a t r ue a nd f a i r v i ew i n a c c o r da n c e w i t h A u st r a lia n A c c ount i ng S t a nd a r d s a nd t h e C or por a t i ons A c t 2001 i m pl em ent i ng nec es s a r y i nt e r na l c on t r ol t o en a bl e t he pr e pa r a t i on of a Fi na nc i a l R epor t t ha t gi v es a t r ue a nd f a i r v i ew a nd i s f r ee f r om m a t e r i a l m i s s t a t em en t w het her due t o f r a ud or er r or a s s es s i ng t he G r oup a nd C o m pa n y s a bi l i t y t o c o nt i nue a s a goi ng c on c er n a nd w het h er t he us e o f t he goi ng c onc e r n ba s i s of a c c oun t i ng i s ap p r o p r i at e Thi s i nc l udes di s c l os i ng a s a ppl i c a bl e m a t t er s r el a t ed t o goi ng c onc e r n a nd us i ng t he goi ng c on c er n b a s i s of a c c oun t i ng unl es s t hey ei t her i nt end t o l i qui da t e t he G r oup a nd C om pa n y or t o c e a s e ope r a t i ons or h a v e no r ea l i s t i c a l t er n a t i v e bu t t o do so A u d i t o r s r e s p o n s i b i l i t i es f o r t h e au d i t o f t h e Fi n a n c i a l R e por t O ur obj ec t i v e i s t o obt a i n r e a s ona bl e a s s ur a n c e a bou t w het her t he Fi na n c i a l R epor t a s a w hol e i s f r ee f r om m a t e r i a l m i s s t a t e m ent w he t her due t o f r a ud or e r r or a nd to i s s ue a n A udi t or s R epor t t ha t i n c l udes our opi ni on R ea s on a bl e a s s ur a n c e i s a hi gh l ev el of a s s ur a n c e but i s not a gu a r a nt ee t h a t a n a udi t c onduc t ed i n ac co r d an ce w i t h A u s t r a l i a n A udi t i ng S t a nd a r d s w ill a lw a y s d e t e c t a m a t e r ia l m iss t a t e m e n t w h e n it e xi st s M i s s t a t em en t s c a n a r i s e f r o m f r a ud or e r r or The y a r e c o ns i der ed m a t er i a l i f i ndi v i du a l l y or i n t he a ggr eg a t e t he y c oul d r ea s on a bl y be ex pe c t ed t o i nf l uenc e t he ec onom i c dec i s i on s of us er s t a k en on t he ba s i s of th e Fi na nc i a l R epor t A fu rth e r d e s c ri pt i on of our r es pons i bi l i t i es f or t he a udi t o f t he Fi na n c i a l R epor t i s l oc a t ed a t t he A udi t i ng a nd A s s ur a nc e S t a nda r ds B o a r d w e b si t e at ht t p w w w a ua s b go v a u a udi t or s r e s pon s i bi l i t i es a r 1 pdf Thi s des c r i pt i on f or m s p a r t o f our A udi t or s R epor t 87 ALS LIMITED AND IT S SUBSIDIARIES A NNU AL F INANCIAL R EPOR T F OR THE Y EAR E NDED 31 M AR CH 2019 F INANCIAL REPOR T I NDEPENDENT A UDIT OR S REPOR T T O THE MEMBERS OF ALS L IMITED