DSV Annual Report 2022
93
DSV Annual Report 2022 Statements
= III
In addition, we applied data analysis in our testing of revenue transactions in
order to identify and assess transactions outside the ordinary transaction flow.
Deferred tax assets and income tax positions
The Group operates in many territories and is, consequently, subject to
local laws and cross-border transfer pricing legislation, which complicates
the Group's tax matters, and which gives rise to provisions for income
tax positions.
The Group also carries significant deferred tax assets that consist primarily of
tax on provisions made at the balance sheet date and tax loss carryforwards.
The utilisation of tax assets is, inherently, uncertain, as they are dependent
on the financial development of business activities in certain countries.
We focused on this area because the valuation of deferred tax assets and
provisions for income tax positions are subject to significant Management
estimates, including Management's applied model, data and assumptions.
Reference is made to note 5.2 to the Consolidated Financial Statement.
How our audit addressed the key audit matter
Our audit procedures included considering the appropriateness of the
accounting policies and valuation models within the tax accounting area
and assessing compliance with applicable financial reporting standards.
We also assessed Management's process for identifying and assessing
complex income tax transactions as well as deferred tax assets that might
not be recoverable.
We tested provisions made for income tax positions. As part of this, we
reviewed correspondence with tax authorities and discussed methods and
data applied as well as assumptions made by Management. In doing so,
we used our internal corporate tax specialists.
Moreover, we tested Management's assessment of the recoverability of
the carrying value of deferred tax assets arising from temporary differ-
ences and tax loss carryforwards on the basis of internal forecasts of fu-
ture taxable income, and evaluated the assumptions made by Manage-
ment in this connection.
Statement on Management's Commentary
Management is responsible for Management's Commentary
Our opinion on the Financial Statements does not cover Management's Com-
mentary, and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsi-
bility is to read Management's Commentary and, in doing so, consider
whether Management's Commentary is materially inconsistent with the
Financial Statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.
Moreover, we considered whether Management's Commentary includes
the disclosures required by the Danish Financial Statements Act.
Based on the work we have performed, in our view, Management's Com-
mentary is in accordance with the Consolidated Financial Statements and
the Parent Company Financial Statements and has been prepared in accord-
ance with the requirements of the Danish Financial Statements Act. We did
not identify any material misstatement in Management's Commentary.
Management's responsibilities for the Financial Statements
Management is responsible for the preparation of consolidated financial
statements and parent company financial statements that give a true and fair
view in accordance with International Financial Reporting Standards ('IFRS') as
issued by the International Accounting Standards Board ('IASB') and in accord-
ance with IFRS as adopted by the EU and further requirements in the Danish
Financial Statements Act, and for such internal control as Management deter-
mines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management is responsible for
assessing the Group's and the Parent Company's ability to continue as a
going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless Management ei-
ther intends to liquidate the Group or the Parent Company or to cease
operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the
Financial Statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor's report that in-
cludes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs and
the additional requirements applicable in Denmark will always detect a
material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions
of users taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the additional require-
ments applicable in Denmark, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the Financial
Statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, for-
gery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in
order to design audit procedures that are appropriate in the circum-
stances, but not for the purpose of expressing an opinion on the ef-
fectiveness of the Group's and the Parent Company's internal control.
Evaluate the appropriateness of accounting policies used and the rea-
sonableness of accounting estimates and related disclosures made by
Management.
Conclude on the appropriateness of Management's use of the going
concern basis of accounting and based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditionsView entire presentation