Please answer the question which you are able to figure out

AIR NEW ZEALAND GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR TO 30 JUNE 2019 2019 SM 2018 SM NOTE Net Profit for the Year 270 390 (9) 3 3 (6) Other Comprehensive Income: Items that will not be reclassified to profit or loss: Actuarial losses on defined benefit plans Taxation on above reserve movements Total items that will not be reclassified to profit or loss Items that may be reclassified subsequently to profit or loss: Changes in fair value of cash flow hedges Transfers to net profit from cash flow hedge reserve Net translation gain on investment in foreign operations Changes in cost of hedging reserve Taxation on above reserve movements Total items that may be reclassified subsequently to profit or loss Total Other Comprehensive Income for the Year, Net of Taxation Total Comprehensive Income for the Year, Attributable to Shareholders of the Parent Company (41) (85) 159 (92) 2 12 (21) 60 (8) 38 3 (96) (102) 60 450 168 AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2019 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR TO 30 JUNE 2019 SHARE CAPITAL SM HEDGE RESERVES SM FOREKON CURRENCY TRANSLATION RESERVE SM GENERAL RESERVES SM TOTAL FOUNITY SM NOTES 2.226 66 (13) .- (103) 270 (6) 264 2,176 270 (102) 168 197 (97) 1 Balance as at 1 July 2018 Net profit for the year Other comprehensive income for the year Total Comprehensive Income for the Year Transactions with Owners: Equity-settled share-based payments (net of taxation) Equity settlements of long-term incentive obligations Dividends on Ordinary Shares Total Transactions with Owners Balance as at 30 June 2010 3,17 12 16 (14) (248) (248) (87) 7 (14) (248) (255) 2,089 2.219 (31) (12) FOREIGN CURRENCY TRANSLATION RESERVE HEDGE RESERVES IV SHARE CAPITAL SM 2238 NOTES GENERAL RESERVES IM TOTAL EQUITY 9 (16) 0245) 300 1986 390 80 57 57 390 450 Balance as at 1 July 2017 Not profit for the year Other comprehensive income for the year Total Comprehensive income for the Year Transactions with Owners Equity - Daynents not Taxation gutytents of terminative obligations Dideos Share Total Transactions with Owners Balance as at 30 June 2013 3.17 tra (248) 21 2002 03 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019 5 LOSS 7 22 81 48 1,343 570 75 187 4 68 2.253 8 56 1804 Current Assets Bank and short-term deposits Trade and other receivables Inventories Derivative financial assets Income taxation Other assets Total Current Assets Non-Current Assets Trade and other receivables Property, plant and equipment Intangible assets Investments in other entities Derivative financial assets Other assets Total Non-Current Assets Total Assets 6 9 10 11 64 5.258 TT 5.035 170 18 2 191 149 285 5.95 7750 5.593 7840 585 1372 307 Current abilities Trade and other payables Revenue in advance Interest-bearing tabi Derivative financial lates Provisions income taxation Other abilities Total Current Liabilities Non-Current Liabilities Revenue in advance 13 22 14 1322 431 1 177 32 105 25 240 15 263 2.00 2006 12 200 2.200 5 42 185 2.300 151 Total Non-Current Liabilities 38 2.14 3.000 5.667 Met Art STATEMENT OF CASH FLOWS FOR THE YEAR TO 30 JUNE 2019 2010 SM NOTES SM Cash Flows from Operating Activities Receipts from customers Payments to suppliers and employees Income tax paid Interest paid Interest received Net Cash Flow from Operating Activities 5,869 (4,835) (23) (71) 46 5,444 (4,307) (81) (63) 5 986 1,031 24 Cash Flows from Investing Activities Disposal of property, plant and equipment, intangibles and assets held for resale Distribution from associates Acquisition of property, plant and equipment and intangibles Interest-bearing asset payments Net Cash Flow from Investing Activities 13 7 (821) (82) 33 16 (809) (18) (883) (778) 347 (20) 17 Cash Flows from Financing Activities Interest-bearing liabilities drawdowns Rollover of foreign exchange contracts Equity settlements of long-term incentive obligations Interest-bearing liabilities payments Dividends on Ordinary Shares Net Cash Flow from Financing Activities Decrease in Cash and Cash Equivalents Cash and cash equivalents at the beginning of the year Cash and Cash Equivalents at the End of the Year 16 263 58 (14) (438) (260) (391) (288) 1.343 (329) (260) (279) 126) 1.360 1343 5 1055 Relates to Owostes on rollover of foreign exchange contracts that hedge exposures in other financial periods Cattan balances for the year to 30 June 2018 have been restated following the adoption of NZ IFRS 15 Revenue from Contracts with Du Background information Assume that your firm is successful in gaining the audit of Air New Zealand Limited. You are asked by the audit engagement partner to plan the audit, in particular determine areas of risk, materiality and assertions to be examined. As always you wish to keep your detection risk to a minimum. NOTE: You are not expected to assess control risks asthis would require having accessto this entity, which is not permitted for the purposes of this presentation workshop. Questions to be addressed by those presenting (and for those not presenting, in bullet-point summaries) are: a) Carry out a preliminary analytical procedure to review the Air New Zealand annual financial statements as these are appropriate for the client. Explain the reason for choosing selected ratios, what you found and, how the results will influence your planning of the audit. b) Based on the business risk' and 'industry risk' identified (in workshop 1) for Air New Zealand, what assertions over account balances and other disclosures in the financial statements will these risks impact and how? Identify key assertions that you think need to be tested and explain the audit objective behind these tests. c) Using your judgement, identify a 'base' and select a materiality level for Air New Zealand's (Group) balance sheet. Justify you r decision. Allocate that amount to the balance sheet accountsin proportion to their $ size and assessthe results. Consider what would have occurred if you had chosen a larger or a smaller 'materiality' amount, or if you had allocated them differently AIR NEW ZEALAND GROUP STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR TO 30 JUNE 2019 2019 SM 2018 SM NOTE Net Profit for the Year 270 390 (9) 3 3 (6) Other Comprehensive Income: Items that will not be reclassified to profit or loss: Actuarial losses on defined benefit plans Taxation on above reserve movements Total items that will not be reclassified to profit or loss Items that may be reclassified subsequently to profit or loss: Changes in fair value of cash flow hedges Transfers to net profit from cash flow hedge reserve Net translation gain on investment in foreign operations Changes in cost of hedging reserve Taxation on above reserve movements Total items that may be reclassified subsequently to profit or loss Total Other Comprehensive Income for the Year, Net of Taxation Total Comprehensive Income for the Year, Attributable to Shareholders of the Parent Company (41) (85) 159 (92) 2 12 (21) 60 (8) 38 3 (96) (102) 60 450 168 AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2019 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR TO 30 JUNE 2019 SHARE CAPITAL SM HEDGE RESERVES SM FOREKON CURRENCY TRANSLATION RESERVE SM GENERAL RESERVES SM TOTAL FOUNITY SM NOTES 2.226 66 (13) .- (103) 270 (6) 264 2,176 270 (102) 168 197 (97) 1 Balance as at 1 July 2018 Net profit for the year Other comprehensive income for the year Total Comprehensive Income for the Year Transactions with Owners: Equity-settled share-based payments (net of taxation) Equity settlements of long-term incentive obligations Dividends on Ordinary Shares Total Transactions with Owners Balance as at 30 June 2010 3,17 12 16 (14) (248) (248) (87) 7 (14) (248) (255) 2,089 2.219 (31) (12) FOREIGN CURRENCY TRANSLATION RESERVE HEDGE RESERVES IV SHARE CAPITAL SM 2238 NOTES GENERAL RESERVES IM TOTAL EQUITY 9 (16) 0245) 300 1986 390 80 57 57 390 450 Balance as at 1 July 2017 Not profit for the year Other comprehensive income for the year Total Comprehensive income for the Year Transactions with Owners Equity - Daynents not Taxation gutytents of terminative obligations Dideos Share Total Transactions with Owners Balance as at 30 June 2013 3.17 tra (248) 21 2002 03 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019 5 LOSS 7 22 81 48 1,343 570 75 187 4 68 2.253 8 56 1804 Current Assets Bank and short-term deposits Trade and other receivables Inventories Derivative financial assets Income taxation Other assets Total Current Assets Non-Current Assets Trade and other receivables Property, plant and equipment Intangible assets Investments in other entities Derivative financial assets Other assets Total Non-Current Assets Total Assets 6 9 10 11 64 5.258 TT 5.035 170 18 2 191 149 285 5.95 7750 5.593 7840 585 1372 307 Current abilities Trade and other payables Revenue in advance Interest-bearing tabi Derivative financial lates Provisions income taxation Other abilities Total Current Liabilities Non-Current Liabilities Revenue in advance 13 22 14 1322 431 1 177 32 105 25 240 15 263 2.00 2006 12 200 2.200 5 42 185 2.300 151 Total Non-Current Liabilities 38 2.14 3.000 5.667 Met Art STATEMENT OF CASH FLOWS FOR THE YEAR TO 30 JUNE 2019 2010 SM NOTES SM Cash Flows from Operating Activities Receipts from customers Payments to suppliers and employees Income tax paid Interest paid Interest received Net Cash Flow from Operating Activities 5,869 (4,835) (23) (71) 46 5,444 (4,307) (81) (63) 5 986 1,031 24 Cash Flows from Investing Activities Disposal of property, plant and equipment, intangibles and assets held for resale Distribution from associates Acquisition of property, plant and equipment and intangibles Interest-bearing asset payments Net Cash Flow from Investing Activities 13 7 (821) (82) 33 16 (809) (18) (883) (778) 347 (20) 17 Cash Flows from Financing Activities Interest-bearing liabilities drawdowns Rollover of foreign exchange contracts Equity settlements of long-term incentive obligations Interest-bearing liabilities payments Dividends on Ordinary Shares Net Cash Flow from Financing Activities Decrease in Cash and Cash Equivalents Cash and cash equivalents at the beginning of the year Cash and Cash Equivalents at the End of the Year 16 263 58 (14) (438) (260) (391) (288) 1.343 (329) (260) (279) 126) 1.360 1343 5 1055 Relates to Owostes on rollover of foreign exchange contracts that hedge exposures in other financial periods Cattan balances for the year to 30 June 2018 have been restated following the adoption of NZ IFRS 15 Revenue from Contracts with Du Background information Assume that your firm is successful in gaining the audit of Air New Zealand Limited. You are asked by the audit engagement partner to plan the audit, in particular determine areas of risk, materiality and assertions to be examined. As always you wish to keep your detection risk to a minimum. NOTE: You are not expected to assess control risks asthis would require having accessto this entity, which is not permitted for the purposes of this presentation workshop. Questions to be addressed by those presenting (and for those not presenting, in bullet-point summaries) are: a) Carry out a preliminary analytical procedure to review the Air New Zealand annual financial statements as these are appropriate for the client. Explain the reason for choosing selected ratios, what you found and, how the results will influence your planning of the audit. b) Based on the business risk' and 'industry risk' identified (in workshop 1) for Air New Zealand, what assertions over account balances and other disclosures in the financial statements will these risks impact and how? Identify key assertions that you think need to be tested and explain the audit objective behind these tests. c) Using your judgement, identify a 'base' and select a materiality level for Air New Zealand's (Group) balance sheet. Justify you r decision. Allocate that amount to the balance sheet accountsin proportion to their $ size and assessthe results. Consider what would have occurred if you had chosen a larger or a smaller 'materiality' amount, or if you had allocated them differently