AmazonScience/document-haystack

15. Our ability to detect irregularities, and our response2Fraud – identifying and responding to risks of material misstatement due to fraud3Fraud risk 4assessment 5To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that 6could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk 7assessment procedures included:8 Enquiring of directors, the audit committee, internal audit and inspection of policy documentation as to the 9Group’s high-level policies and procedures to prevent and detect fraud, including the internal audit function, 10and the Group’s channel for “whistleblowing”, as well as whether they have knowledge of any actual, 11suspected or alleged fraud.12 Reading Board, audit committee, and remuneration committee minutes. 13 Considering remuneration incentive schemes and performance targets for directors and how these are 14impacted by separately disclosed items.15 Using analytical procedures to identify any unusual or unexpected relationships.16 Our forensic specialists assisted us in identifying key fraud risks. This included holding a discussion with the 17engagement partner and team and assisting with designing relevant audit procedures to respond to the 18identified fraud risks.19Risk  20communications21We communicated identified fraud risks throughout the audit team and remained alert to any indications of 22fraud throughout the audit. This included communication from the Group audit team to full scope component 23audit teams of relevant fraud risks identified at the Group level and request to full scope component audit teams 24to report to the Group audit team any instances of fraud that could give rise to a material misstatement at the 25Group level.26Fraud risks As required by auditing standards, and taking into account possible pressures to meet profit targets and bonus 27incentives, we perform procedures to address the risk of management override of controls and the risk of 28fraudulent revenue recognition, in particular the risk that revenue from the Group’s online operations is at risk 29of being overstated due to manual manipulation, that management may be in a position to make inappropriate 30accounting entries, and the risk of bias in accounting estimates and judgements such as accounting for 31acquisitions and the recognition of intangible assets, provisions for impairment and pension assumptions.32We did not identify any additional fraud risks.33Link to KAMS Further detail in respect of online revenue recognition is set out in the key audit matter disclosure in section 4.1 34of this report.35Procedures to 36address fraud risks37We also performed procedures including:38 Identifying journal entries and other adjustments to test for all full scope components based on high 39risk criteria for each component and comparing the identified entries to supporting documentation. 40These included: postings between unusual accounts for revenue, cash and assets; entries without a 41description or with a description of senior management; unexpected entries that credit adjusted EBTIDA and 42debit other areas of the income statement; and entries by users who seldom post journals. 43 Evaluated the business purpose of significant unusual transactions. 44 Assessing whether significant accounting estimates are indicative of a potential bias.451 Overview 8 Strategic report 88 Governance 140 Financial statements46Entain plc Annual Report 2023 15347Independent 48Auditor’s Report