DONACO INTERNATIONAL LIMITED 2018 ANNUAL REPORT 78 79 DONACO INTERNATIONAL LIMITED 2018 ANNUAL REPORT 79 78 REPORT ON THE AUDIT OF THE FINANCIAL REPORT Opinion We have audited the financial report of Donaco International Limited (the company) and its subsidiaries (the consolidated entity), which comprises the consolidated statement of financial position as at 30 June 2018, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion, the accompanying financial report of the consolidated entity is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2018 and of its financial performance for the year then ended; and (b) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the consolidated entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Crowe Horwath Sydney is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under professional standards legislation. Liability limited other than for the acts or omissions of financial services licensees. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report for the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF DONACO INTERNATIONAL LIMITED INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF DONACO INTERNATIONAL LIMITED Crowe Horwath Sydney is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under professional standards legislation. Liability limited other than for the acts or omissions of financial services licensees. Decentralised operations KEY AUDIT MATTER HOW WE ADDRESSED THE KEY AUDIT MATTER The consolidated entity comprises subsidiaries (components) whose operations are spread across Cambodia, Vietnam and Hong Kong. The decentralised and varied nature of these operations require significant oversight by management to monitor the activities, to review financial reporting by the components, and to undertake the consolidated entity’s consolidation. This matter has been identified as a key audit matter given the following: • number and significance of the subsidiaries to the consolidated entity • varied nature of the operations and accounting systems and processes • manual nature of the consolidation process • multiple foreign currencies involved. Our audit procedures included, amongst others, the following: • visited and held discussion with the component auditor of DNA Star Vegas Co. Limited • held discussions with the component auditors of Donaco Hong Kong Limited and Lao Cai International Hotel Joint Venture Company • tailored our group reporting instructions and designed audit procedures based on information obtained during audit planning and our assessment of the consolidated entity’s overall audit risks • maintained communication with the component auditors throughout the audit process • evaluated the work performed by the component auditors for sufficiency for our overall group audit purpose • agreed the financial data used in the consolidation to the component auditors’ group reporting • tested the mathematical accuracy of the consolidation workings, including reperforming foreign currency translations and evaluating the completeness and accuracy of the consolidation elimination entries.