Annual Report & Accounts 2026
42
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KEYSTONE LAW GROUP PLC CONTINUED
How the matter was addressed in the audit
Our audit procedures included:
• Reviewing the appropriateness of the Group’s revenue polices in conjunction with IFRS 15 “Revenue from contracts with customers” to assess whether revenue has been recorded in accordance with the requirements of that standard;
• Assessing the design and implementation of key controls in respect of revenue recognition. We have not placed reliance on the operating effectiveness of controls relating to revenue recognition at the audit;
• Performing data analytics testing to assess the occurrence and accuracy of revenue. The analytic tool assesses 100% of transactions affecting the relevant sales cycle (revenue, receivables, cash, etc) during the year, leveraging work completed in other parts of the audit to gain assurance over expected/
in-cycle transactions. The remaining population of unexpected, unusual and out-of-cycle transactions was then tested and agreed to supporting documentation as necessary;
• Separately testing revenue cut-off by reviewing a sample of invoices raised around the year end to assess whether the revenue has been accounted for in the correct period;
• Assessing the estimate of year-end accrued income by: challenging management’s forecasts and percentages applied; and recalculating and testing these to assess whether they are reasonable by reference to post year end invoicing.
Key observations
We concluded that the recognition and measurement assumptions made by management with respect to revenue and accrued income are reasonable based on the audit evidence obtained.
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF KEYSTONE LAW GROUP PLC CONTINUED
How the matter was addressed in the audit
Our audit procedures included:
• Reviewing the appropriateness of the Group’s revenue polices in conjunction with IFRS 15 “Revenue from contracts with customers” to assess whether revenue has been recorded in accordance with the requirements of that standard;
• Assessing the design and implementation of key controls in respect of revenue recognition. We have not placed reliance on the operating effectiveness of controls relating to revenue recognition at the audit;
• Performing data analytics testing to assess the occurrence and accuracy of revenue. The analytic tool assesses 100% of transactions affecting the relevant sales cycle (revenue, receivables, cash, etc) during the year, leveraging work completed in other parts of the audit to gain assurance over expected/
in-cycle transactions. The remaining population of unexpected, unusual and out-of-cycle transactions was then tested and agreed to supporting documentation as necessary;
• Separately testing revenue cut-off by reviewing a sample of invoices raised around the year end to assess whether the revenue has been accounted for in the correct period;
• Assessing the estimate of year-end accrued income by: challenging management’s forecasts and percentages applied; and recalculating and testing these to assess whether they are reasonable by reference to post year end invoicing.
Key observations
We concluded that the recognition and measurement assumptions made by management with respect to revenue and accrued income are reasonable based on the audit evidence obtained.