87 2022 ANNUAL REPORT Key Audit Matters The Key Audit Matters we identified are: • Sales revenue; • Property, plant and equipment and mine properties; and • Going concern basis of accounting. Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Report of the current period. These matters were addressed in the context of our audit of the Financial Report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Sales revenue ($164.962 million) Refer to Note 5(a) to the Financial Report The key audit matter How the matter was addressed in our audit Existence and accuracy of sales revenue is a key audit matter due to its significance to the consolidated financial statements combined with the incremental audit effort assessing the application of relevant accounting standards. Gold sales revenue from the Group’s Darlot and King of the Hills (KOTH) operations was the most significant item in the consolidated statement of profit or loss ($164.962 million). We focused on the following judgements the Group applied in determining sales revenue: • Assessing the revenue recognised against the requirements of AASB 15 Revenue form Contracts with Customers; • Judgements made by the Group in the early adoption to forthcoming requirements to AASB 116 Property, Plant and Equipment. Proceeds from sales made from the KOTH operation while in pre-production phase have been recorded in the income statement with a corresponding allocation made to costs of goods sold; and • The application of the “own-use” exemption for gold forward contracts. Our procedures included: • We considered the Group’s accounting policies for the recognition of sales revenue against the requirements of the accounting standards; • For gold sales recognised during the year we obtained the sales invoice and compared the quantity sold against third party statements from the refinery and cash received in the bank; • For a sample of sales recorded close to year end, we tested against the recognition criteria of AASB 15 checking control had passed to the customer to the date of the third party statements; • We evaluated the methodology for allocating costs to inventory for sales made in the KOTH pre-production phase. We tested, on a sample basis, costs allocated against these sales; and • For gold forward contracts where “own-use” exemption was applied, we checked the gold forward contracts, compared to the Group’s gold production forecasts and inquired with finance and operational personnel as to the intention to deliver physical gold in those contracts in accordance with the requirements of the accounting standards to apply the own-use exemption. Independent AUDITOR’S REPORT (cont.)
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