137 Integrated Annual Report 2021 Governance Audited Financial Statements Other Information Report on the audit of the financial statements (Cont’d.) Key audit matters (Cont’d.) Revenue recognition Refer to Note 2.19.1 – Revenue from contracts with customers and Note 5 – Revenue. The Group recognised total revenue of RM6.3 billion during the financial year ended 31 December 2021. Revenue was measured taking into account the bundling of services with handsets and discounts. The inherent industry risk arises from the complexity of the telecommunications billing system. Large volumes of data with a combination of different products sold and price changes during the financial year were processed through a number of different modules in the telecommunications billing system.These may have an impact on the amount of revenue recognised during the financial year.As such, we considered revenue recognition to be a key audit matter. We performed the following audit procedures amongst others: - Obtained an understanding of the Information Technology (“IT”) automated and manual controls surrounding revenue systems and processes such as capturing and recording revenue transactions, authorisation of rate changes and timely updating of approved rate changes in the billing system, and tested the operating effectiveness of these IT automated and manual controls; - Tested end-to-end reconciliation from billing system to accounting system including verifying material revenue adjustments passed into the accounting system; - Tested the allocation of revenue to separately identifiable components of multiple element arrangements,particularly in relation to transactions that include the delivery of handset combined with a service element in the contracts, as well as the timing of the revenue recognised; and - Evaluated appropriateness of revenue recognition policies. Information other than the financial statements and auditors’ report thereon The directors of the Company are responsible for the other information. The other information comprises the directors’ report and annual report, but does not include the financial statements of the Group and of the Company and our auditors’ report thereon, which we obtained prior to the date of this auditors’ report. Our opinion on the financial statements of the Group and of the Company does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements of the Group and of the Company, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements of the Group and of the Company or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’ report, we conclude that there is a material misstatement of this other information, we are required to report that fact.We have nothing to report in this regard. Independent Auditors’ Report to the members of Digi.Com Berhad (Incorporated in Malaysia)
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