Ntegrator International Ltd. - Annual Report 2020

51 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NTEGRATOR INTERNATIONAL LTD. Report on Audit of the Financial Statements Opinion We have audited the accompanying financial statements of Ntegrator International Ltd. (the “Company”) and its subsidiary corporations (the “Group”), which comprise the consolidated statement of financial position of the Group and the statement of financial position of the Company as at 31 December 2020, and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows of the Group for the financial year then ended, and notes to the financial statements, including a summary of significant accounting policies, as set out on pages 55 to 97. In our opinion, the accompanying consolidated financial statements of the Group and the statement of financial position of the Company are properly drawn up in accordance with the provisions of the Companies Act, Chapter 50 (the “Act”) and Singapore Financial Reporting Standards (International) (“SFRS(I)s”) so as to give a true and fair view of the consolidated financial position of the Group and the financial position of the Company as at 31 December 2020 and of the consolidated financial performance, consolidated changes in equity and consolidated cash flows of the Group for the financial year ended on that date. Basis for Opinion We conducted our audit in accordance with Singapore Standards on Auditing (“SSAs”). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority (“ACRA”) Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities (“ACRA Code”) together with the ethical requirements that are relevant to our audit of the financial statements in Singapore, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements for the financial year ended 31 December 2020. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Revenue recognition (Refer to Notes 2.2 and 4 to the financial statements) Area of focus For the financial year ended 31 December 2020, the Group generated total revenue of approximately S$23,102,000 arising from project sales, project management and maintenance services. Revenue is recognised when the Group satisfied a performance obligation by transferring promised goods or services to the customer, which is when a customer obtains control of the goods or service (ie, upon acceptance by the customer). A performance obligation may be satisfied at a point in time or over time. We focused on this area due to the magnitude and significant volume of transactions, and minor errors which could, in aggregate, have a material impact to the financial statements. How our audit addressed the area of focus In obtaining sufficient audit evidence, we have performed the following procedures: • Understood, evaluated and validated the relevant key controls put in place by management over revenue recognition; • Reviewed the significant contracts during the financial year to assess whether the revenue is recognised in accordance with the Group’s accounting policies as disclosed in Note 2.2 to the financial statements; • Performed substantive analytical procedures and verified the revenue recognised, including sales cut-off procedures as at financial year end to ensure that the revenue is recognised in the correct financial year; and • Reviewed and assessed that the Group’s revenue recognition policy is in accordance with SFRS(I) 15 and has been consistently applied within the Group.