47153 AG Barr Annual Report 2025 AW4 SQ WEB - Flipbook - Page 136
A.G. BARR p.l.c. Annual Report and Accounts 2025
I N D E P E N D E NT
AU D ITO R ’ S
R E P O R T TO TH E
MEMBERS OF
A .G. B A R R P. L .C .
CO N TI N U ED
6.3. Error reporting threshold
We agreed with the Audit and Risk Committee that we would report to the Committee all audit differences in excess of £146,000 (2024: £125,000), as well as differences below
that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the Audit and Risk Committee on disclosure matters that we identified when
assessing the overall presentation of the financial statements.
7. An overview of the scope of our audit
7.1. Identification and scoping of components
Our group audit was scoped by developing an audit plan for each significant account. Through discussion with IT, internal audit, and the group and component finance teams
and by performing walkthroughs of processes across each of these areas, including group-wide controls, and assessing the risk of material misstatement at a group level, we
assessed the qualitative and quantitative characteristics of each Financial Statement line item and considered the relative contribution of each component to these line items.
Based on this assessment, we focused our work on 4 (2024: 4) components which represent 97% of revenue (2024: 97%), 99% of profit before tax (2024: 99%) and 96% of net
assets (2024: 100%).
3%
4%
1%
Revenue
Net Assets
Profit before tax
97%
96%
99%
Testing procedures
Analytical review
We performed audit procedures to performance materiality levels applicable to each component, which was lower than the group performance materiality level and ranged
from £0.7m to £1.8m (2024: £0.6m to £1.6m).
The components that we performed audit procedures on are as follows:
• A.G. BARR p.l.c.
• FUNKIN Limited
• Rubicon Drinks Limited
• Boost Drinks Limited
The remaining components were subject to analytical reviews. Our audit work on these components was executed at component materiality, capped at 35% of group
materiality. At the group level, we also tested the consolidation process.
All work was performed by the group engagement team.
7.2. Our consideration of the control environment
With the involvement of our IT specialist we obtained an understanding of the relevant IT environment and tested relevant general IT controls. We tested and relied on the
effectiveness of business controls for certain components within the revenue and brand support accrual business process cycles. As such we obtained an understanding
and tested these controls.
The Audit and Risk Committee discusses their review of the effectiveness of risk management and internal control on page 82.
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