FINANCIAL INFORMATION out principle at the lowest cost and net realizable value at the balance sheet date . The calculation of the net realizable value is based on the Company ’ s assumptions regarding slow moving and obsolete goods . Due to this fact we have considered the valuation of inventory as a key audit matter in our audit .
The Company ’ s disclosures regarding stock-in-trade is presented in note 16 in the annual report .
We have reviewed the Company ’ s processes and procedures for assessing and following up on slow moving and obsolete goods . We have performed an analytical review based on historical comparisons and data analysis in order to identify slow moving and obsolete goods and assess the need to make provision . Furthermore we have also reviewed the effectiveness of the disclosures related to valuation of inventory in the annual report .
OTHER INFORMATION THAN THE ANNUAL ACCOUNTS AND CONSOLIDATED ACCOUNTS This document also contains other information than the annual accounts and consolidated accounts and is found on pages 2 – 49 . The Board of Directors and the CEO are responsible for this other information .
Our opinion on the annual accounts and consolidated accounts does not cover this other information and we do not express any form of assurance conclusion regarding this other information .
In connection with our audit of the annual accounts and consolidated accounts , our responsibility is to read the information identified above and consider whether the information is materially inconsistent with the annual accounts and consolidated accounts . In this procedure we also take into account our knowledge otherwise obtained in the audit and assess whether the information otherwise appears to be materially misstated .
If we , based on the work performed concerning this information , conclude that there is a material misstatement of this other information , we are required to report that fact . We have nothing to report in this regard .
RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE CEO The Board of Directors and the CEO are responsible for the preparation of the annual accounts and consolidated accounts and that they give a fair presentation in accordance with the Annual Accounts Act and , concerning the consolidated accounts , in accordance with IFRS as adopted by the EU . The Board of Directors and the CEO are also responsible for such internal control as they determine is necessary to enable the preparation of annual accounts and consolidated accounts that are free from material misstatement , whether due to fraud or error .
In preparing the annual accounts and consolidated accounts , The Board of Directors and the CEO are responsible for the assessment of the company ’ s and the group ’ s ability to continue as a going concern . They disclose , as applicable , matters related to going concern and using the going concern basis of accounting . The going concern basis of accounting is however not applied if the Board of Directors and the CEO intends to liquidate the company , to cease operations , or has no realistic alternative but to do so .
The Audit Committee shall , without prejudice to the Board of Director ’ s responsibilities and tasks in general , among other things oversee the company ’ s financial reporting process .
AUDITOR ’ S RESPONSIBILITY Our objectives are to obtain reasonable assurance about whether the annual accounts and consolidated accounts as a whole are free from material misstatement , whether due to fraud or error , and to issue an auditor ’ s report that includes our opinions . Reasonable assurance is a high level of assurance , but is not a guarantee that an audit conducted in accordance with ISAs and generally accepted auditing standards in Sweden 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 annual accounts and consolidated accounts .
As part of an audit in accordance with ISAs , we exercise professional judgment and maintain professional skepticism throughout the audit . We also :
• Identify and assess the risks of material misstatement of the annual accounts and consolidated accounts , 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 opinions . The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error , as fraud may involve collusion , forgery , intentional omissions , misrepresentations , or the override of internal control .
• Obtain an understanding of the Company ’ s internal control relevant to our audit in order to design audit procedures that are appropriate in the circumstances , but not for the purpose of expressing an opinion on the effectiveness of the Company ’ s internal control .
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors and the CEO .
• Conclude on the appropriateness of the Board of Directors ’ and the CEO ’ s use of the going concern basis of accounting in preparing the annual accounts and consolidated accounts . We also draw a conclusion , based on the audit evidence obtained , as to whether any material uncertainty exists related to events or conditions that may cast significant doubt on the company ’ s and the group ’ s ability to continue as a going concern . If we conclude that a material uncertainty exists , we are required to draw attention in our auditor ’ s report to the related disclosures in the annual accounts and consolidated accounts or , if such disclosures are inadequate , to modify our opinion about the annual accounts and consolidated accounts . Our conclusions are based on the audit evidence obtained up to the date of our auditor ’ s report . However , future events or conditions may cause a company and a group to cease to continue as a going concern .
• Evaluate the overall presentation , structure and content of the annual accounts and consolidated accounts , including the disclosures , and whether the annual accounts and consolidated accounts represent the underlying transactions and events in a manner that achieves fair presentation .
• Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated accounts . We are responsible for the direction , supervision and performance of the group audit . We remain solely responsible for our opinions .
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