LFV Annual Report 2019 1
A UDIT REPOR T LFV 2019 AUDIT REPORT FOR THE CIVI
L AVIATION AUTHORITY 2019 REPORT ON THE ANNUAL ACCOUNTS AND CONSOLIDATED ACCOUNTS STATEMENTS In accordance with Section 5 of the Auditing of State Activities, etc. Act (2002:1022), the Swedish National Audit Office has audited the annual report and consolidated accounts for the Civil Aviation Authority for 2019, dated 13/02/2020. According to the Swedish National Audit Office’s opinion, the authority has: • drawn up the annual report and consolidated accounts in accordance with the Annual Reports and Budget Documentation Ordinance (2000:605), instructions, appropriation directions and government decisions specific to the authority. • in all material respects provided a true and fair picture of the Civil Aviation Authority’s and the group’s financial results, funding and financial position, as of 31 December 2019. • submitted a director’s report and other information that is consistent with and supports a true and fair picture in the annual report as a whole. GROUNDS FOR THE OPINIONS The Swedish National Audit Office has carried out the audit in accordance with the International Standards of Supreme Audit Institutions (ISSAI) for financial auditing and the instructions of the Swedish National Audit Office for auditing accounting results and other information in the annual report (RRI). Our responsibility according these standards is described in more detail in the section Auditor's Responsibility. We are independent of the authority in accordance with the ISSAI 30 Code of Ethics, and have fulfilled our commitments pursuant to these ethical rules. We believe that the audit evidence we have obtained is sufficient and appropriate as a basis for the Swedish National Audit Office’s statements. Senior management’s responsibility for the annual report It is the authority’s senior management who are responsible for drawing up an annual report that provides a true and fair picture in accordance with the Annual Reports and Budget Documentation Ordinance (2000:605) and in accordance with instructions, appropriation directions and other decisions concerning the authority. Senior management are also responsible for ensuring that the internal governance and controls they deem necessary are in place in order to draw up an annual report that is free of material misstatement, whether due to irregularities or error. In preparing the annual report, senior management is responsible for assessing the authority’s capability to continue operations. They highlight, as applicable, circumstances that may affect the ability to continue operations and to use the going concern assumption unless there are special reasons not to do so. Auditor’s responsibility Our objective is to achieve a reasonable degree of certainty that the annual report as a whole is free from material misstatement, whether due to irregularities or error, and to submit an audit report containing the Swedish National Audit Office’s statements. Reasonable certainty is a high level of confidence, but is no guarantee that an audit carried out in accordance with the ISSAI and RRI will always detect the presence of a material inaccuracy. Inaccuracies may arise due to irregularities or error and are considered material if they, individually or as a whole, can reasonably be expected to impact financial decisions the user makes on the basis of the annual report. As part of an audit in accordance with the ISSAI, we use professional judgement and employ a professional scepticism throughout the audit. Additionally: • we identify and assess the risks of material inaccuracies in the annual report, whether due to irregularities or error, structure and conduct our audit procedures based, inter alia, on these risks, and obtain audit evidence that is sufficient and appropriate to constitute grounds for our statements. The risk of failing to detect a material inaccuracy resulting from irregularities is higher than that of a material inaccuracy due to error, because irregularities may involve acting in collusion, falsification, intentional omissions, misinformation or failure to implement internal governance and controls. • we obtain an understanding of the part of the authority’s internal governance and controls that is relevant for our audit in order to structure audit procedures that are appropriate given the circumstances, but not for stating an opinion about the effectiveness of the authority’s internal governance and controls. • we evaluate the appropriateness of accounting principles that are used and the reasonableness of management’s accounting estimates and related disclosures. • we draw a conclusion on the appropriateness of Managements use of the going concern assumption in preparing the annual report. Based on the acquired audit evidence, we also draw a conclusion on whether there are any material uncertainty factors related to events or circumstances that may lead to significant doubts about the authority’s ability to continue operations. If we conclude that there is a material uncertainty factor in the audit report, we shall draw attention to the disclosures written in the annual report concerning the material uncertainty factor and the assessment shown therein, or, if such information is insufficient, modify our statements in the annual report. • we evaluate the overall presentation, structure and content of the annual report, including the disclosures, and whether the annual report reproduces the underlying transactions and events in a way that provides a true and fair picture. As part of the audit in accordance with the RRI, we plan and implement the audit in order to: • collect sufficient and appropriate audit evidence that the material information of a financial or non-financial nature 69