Page 54 - Hoftex Annual Report 2018 EN

Letter to Shareholders
Supervisory Board Report
Group Management Report Consolidated Financial Statements Annexes
Responsibility of the auditor for auditing the consolidated financial statements and the Group management report
Our objective is to obtain reasonable assurance as to whether the consolidated financial statements as a whole are free from material misstatement – whether intentional or unintentional – and whether the Group management report as a whole provides a suitable view of the Group’s position and is consistent in all material respects with the consolidated financial statements and the findings of our audit, complies with German legal regulations and accurately reflects the opportunities and risks of future growth, and to express an opinion that includes our audit opinion on the consolidated financial statements and the Group management report.
Reasonable assurance is a high level of assurance, but not a guarantee that an audit conducted in accordance with Section 317 HGB and the German generally accepted standards for the audit of financial statements promulgated by the Institute of Public Auditors in Germany (IDW) will always reveal a material misstatement. Misstatements can result from violations or inaccuracies and are regarded as material if it could reasonably be expected for them to individually or collectively in- fluence the business decisions of addressees made on the basis of these consolidated financial state- ments and the Group management report.
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or,
During the audit, we exercise due diligence and maintain a critical view. In addition
• weidentifyandassesstheriskofmaterialmisstatements–whetherintentionalorunintentional– in the consolidated financial statements and the Group management report, plan and perform auditing activities in response to these risks and obtain evidence that is sufficient and appropriate to provide a basis for our audit opinion. The risk of material misstatements not being detected is higher for violations than for inaccuracies, as violations may include fraudulent collusion, fal- sification, intentional incompleteness, misrepresentation or the overriding of internal controls.
• we gain an understanding of the internal control system relevant to the audit of the consolidated financial statements and the precautions and measures relevant to the audit of the Group management report to plan audit procedures that are appropriate under the circumstances, but not for the purpose of expressing an opinion on the efficacy of these systems.
• weassesstheappropriatenessoftheaccountingpoliciesusedbytheManagementBoardandthe reasonableness of the estimates made by the Management Board and related disclosures.
• wedrawconclusionsontheappropriatenessoftheaccountingprincipleappliedbytheManagement Board for the continuation of the company's activities and, on the basis of the audit evidence obtained, whether there is any material uncertainty in connection with events or circumstances that could cast significant doubt on the Group's ability to continue as a going concern. If we conclude that there is a material uncertainty, we are required to express an opinion on the consolidated financial statements and on the Group management report based on the information contained therein.