Grant Thornton Australia Limited Research and development tax incentive refund – refer to note 2 (e) (iii), note 4 and note 8 For the year ended 30 June 2022, the Group recorded a research and development tax incentive refund accrual of $1,316,437 in the consolidated statement of comprehensive income. This is a key audit matter because there is inherent subjectivity involved in the Group's judgements in relation to the calculation and recognition of the research and development tax incentive income and receivable, with several assumptions made in determining the eligibility of claimable expenses. The Group was assisted by an expert with the review of the eligibility of expenses and with the lodgement of the research and development tax incentive claim. Our procedures included, amongst others: • Verifying that management’s specialist is qualified to prepare the calculation; • Evaluating 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 research and development 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 research and development tax 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 2022, 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 70 INOVIQ Limited
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