Grant Thornton Audit Pty Ltd Research and development tax incentive refund – refer to note 2 (e) (iii) and note 4 For the year ended 30 June 2023, the Group recorded a research and development (R&D) tax incentive refund of $1,094,879 in the consolidated statement of comprehensive income. The Group was assisted by a specialist with the review of the eligibility of expenses and with the lodgement of the research and development tax incentive claim. This is a key audit matter because there is inherent subjectivity involved in the Group’s judgements in relation to the recalculation of the R&D tax incentive refund with several assumptions made in determining the eligibility of the claimable expenses. Our procedures included, amongst others: • Evaluating the competence, capabilities and qualification of management’s expert to review the calculation; • Reviewing the reasonableness of assumptions utilised in the calculation; • Testing the mathematical accuracy of the calculation; • Agreeing expenses to the underlying supporting documents and reviewing for reasonableness; • Considering the nature of the expenses against the eligibility criteria of the R&D Tax Incentive Scheme to form a view about whether the expenses included in the estimate were likely to meet the eligibility criteria; • Inspecting copies of relevant correspondence with AusIndustry and the ATO related to the claims; • Using an internal R&D specialist to review the claim prepared by management’s specialist; and • Evaluating the adequacy of the disclosures in the financial statements. Information other than the financial report and auditor’s report thereon The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2023, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report 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 report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, 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. Responsibilities of the Directors for the financial report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Independent Auditor’s Report 72 INOVIQ Limited
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