KUWAIT ENERGY PLC
INDEPENDENT AUDITOR’S REPORT
4
Report on the audit of the financial statements
Opinion
In our opinion the financial statements:
•
give a true and fair view of the state of the group’s affairs as at 31 December 2017 and of the group’s loss
for the year then ended;
•
have been properly prepared in accordance with International Financial Reporting Standards (IFRSs) as
adopted by the European Union; and
•
have been properly prepared in accordance the Companies (Jersey) Law 1991.
We have audited the consolidated financial statements of Kuwait Energy plc (the ‘group’) which comprise:
•
the consolidated income statement;
•
the consolidated statement of comprehensive income;
•
the consolidated balance sheet;
•
the consolidated statement of changes in equity;
•
the consolidated statement of cash flows; and
•
the related notes 1 to 34.
The financial reporting framework that has been applied in their preparation is applicable law and IFRSs as adopted by
the European Union.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the
financial statements section of our report.
We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the
financial statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Summary of our audit approach
Key audit matters
The key audit matters that we identified in the current year were:
•
the carrying value of Property, Plant and Equipment (“PP&E”); and
•
adoption of the going concern basis of accounting.
Materiality
The materiality that we used for the group financial statements was U$$6.3 million (2016:
US$6.8 million) which represents approximately 2.4% of net assets prior to net impairment
of oil and gas assets and approximately 2.9% of revenue.
Scoping
The Group comprises three operational reporting units, Egypt, Iraq and Yemen, alongside
the corporate head office and the Oman JV. All of the components were included in our
assessment of the risks of material misstatement. Full scope audits were performed on all
of the operational business units and the corporate head office and specified audit
procedures were performed on the Oman JV. The materialities applied to components
ranged from US$3.1 million to US$4.4 million.
Significant changes in
our approach
There have been no significant changes in our approach to the audit in 2017.