ON THE ANNUAL REPORT
Hanne Søndergaard
Lars Erik Clausen
Rasmus Munch Sørensen*
* Employee elected Kim Andersen
Chairman
Hans Heidemann Simonsen
Berit Schilling Nielsen*
Hans Duus Jørgensen
Charlotte Foght Linnemann Møller Wedel-Heinen
Hans Peter Møllgaard
Carl Erik Madsen*
Niels Frederik Bergh-Hansen
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128 Annual report 2016 – financial statements Annual report 2016 – financial statements
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the parent’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going con-cern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the parent’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group and the parent to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclo-sures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Report on compliance audit and per-formance audit
Management is responsible for ensur-ing that the transactions covered by the consolidated financial statements and the parent financial statements comply with licences granted, laws and other regulations as well as agreements concluded and generally accepted accounting principles; and that due financial consideration has been given in managing the funds and the operation of the enterprises covered by the consolidated financial statements and the parent financial statements.
In connection with our audit of the financial statements, our responsibil-ity under generally accepted public auditing standards is to select relevant topics for the compliance audit and performance audit. The objective of a compliance audit of the selected topics is to obtain reasonable assur-ance about whether the transactions covered by the consolidated financial statements and parent financial statements comply with licences granted, laws and other regulations as well as agreements concluded and generally accepted accounting princi-ples. The objective of a performance audit is to obtain reasonable assurance about whether the systems, processes or transactions audited support the
due financial consideration given in managing the funds and the operation of the enterprises covered by the financial statements.
If, on the basis of the work performed, we identify instances of noncompli-ance giving rise to significant critical comments, we are required to report them.
We have no significant critical com-ments to report in this respect.
Jens Otto Damgaard State-authorised public accountant
Brian Christiansen State-authorised public accountant FREDERICIA, 16 MARCH 2017 PricewaterhouseCoopers Statsautoriseret
Revisionspartnerselskab CVR no. 33 77 12 31 To the shareholder of Energinet.dk
Opinion
In our opinion, the consolidated finan-cial statements and parent finanfinan-cial statements give a true and fair view of the Group’s and the parent’s assets, liabilities and financial position at 31 December 2016 and of the results of the Group’s and the parent’s operations as well as the Group’s cash flows for the financial year 1 January - 31 December 2016 in accordance with the Danish Financial Statements Act and the Danish Act on Energinet.dk.
We have audited the consolidated financial statements and financial statements of Energinet.dk for the financial year 1 January - 31 December 2016, which comprise the income statement, balance sheet, statement of changes in equity and notes, including accounting policies, for both the Group and the parent as well as the consolidated cash flow statement (‘the financial statements’).
Basis of opinion
We conducted our audit in accordance with international auditing standards and additional requirements applicable in Denmark. Our responsibility under these standards and requirements is described in more detail in the
‘Auditor’s responsibility for the audit of the financial statements’ section of the auditor’s report. We are independent of the Group as required by international ethics standards for auditors (IESBA ethics standards) and additional re-quirements applicable in Denmark, just as we have fulfilled our other ethical obligations under these standards and requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Statement on the management’s review
Management is responsible for the management’s review.
Our opinion on the financial statements does not include the management’s review, and we express no opinion with assurance on the management’s review.
In connection with our audit of the financial statements, our responsibility is to read the management’s review and, in doing so, consider whether the management’s review is materially inconsistent with the financial state-ments or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
Furthermore, our responsibility is to consider whether the management’s review contains the information required by the Danish Financial Statements Act.
Based on the work performed, it is our opinion that the management’s review is consistent with the consolidated financial statements and financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We have not found any material misstatements in the management’s review.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of consolidated financial statements and parent financial statements in accordance with the Danish Financial Statements Act and the Danish Act on Energinet.dk. Management is also responsible for the internal control which management deems to be necessary for the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Group’s and the parent’s ability to continue as a going concern;
for making disclosures in connection with going concern where relevant; as well as to prepare financial statements on a going concern basis, unless management either intends to liquidate the group or the parent or to cease trading, or has no realistic alternative but to do so.
Auditor’s responsibility for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing and additional requirements applicable in Denmark as well as generally accepted public auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with International Standards on Auditing and additional requirements applicable in Denmark as well as generally accepted public auditing standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
INTERNAL AUDITOR’S REPORT
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modify our opinion. Our conclusions are based on the audit evidence ob-tained up to the date of our auditor’s report. However, future events or conditions may cause Energinet.dk to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclo-sures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Statement on the management’s review
Management is responsible for the management’s review.
Our opinion on the financial statements does not include the management’s review, and we express no opinion with assurance on the management’s review.
In connection with our audit of the financial statements, our responsibility is to read the management’s review and, in doing so, consider whether the management’s review is materially inconsistent with the financial state-ments or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
Furthermore, our responsibility is to consider whether the management’s review contains the information re-quired by the provisions of the Danish Financial Statements Act.
Based on the work performed, it is our opinion that the management’s review is consistent with the financial statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We have not found any material misstatements in the management’s review.
Report on other legal and regulatory requirements
Report on compliance audit and performance audit
Management is responsible for ensur-ing that the transactions covered by the consolidated financial statements and the parent financial statements comply with licences granted, laws and other regulations as well as agreements concluded and generally accepted accounting principles; and that due financial consideration has been given in managing the funds and the operation of the enterprises covered by the consolidated financial statements and the parent financial statements.
In connection with our audit of the financial statements, our responsibil-ity under generally accepted public auditing standards is to select relevant topics for the compliance audit and performance audit. The objective of a compliance audit of the selected topics is to obtain reasonable assur-ance about whether the transactions covered by the consolidated financial statements and parent financial statements comply with licences granted, laws and other regulations as well as agreements concluded and generally accepted accounting princi-ples. The objective of a performance audit is to obtain reasonable assurance about whether the systems, processes or transactions audited support the due financial consideration given in managing the funds and the operation
of the enterprises covered by the financial statements.
If, on the basis of the work performed, we identify instances of noncompli-ance giving rise to significant critical comments, we are required to report them.
We have no significant critical com-ments to report in this respect.
Lone Strøm Auditor General
Malene Sau Lan Leung Director
FREDERICIA, 16 MARCH 2017 Rigsrevisionen
Auditor’s report on the financial state-ments
Opinion
We have audited the consolidated financial statements and parent financial statements of Energinet.dk for the financial year 1 January - 31 December 2016, which comprise the income statement, balance sheet, statement of changes in equity, cash flow statement and notes, including accounting policies. The consolidated financial statements and parent financial statements are presented in accordance with the Danish Financial Statements Act.
In our opinion, the consolidated finan-cial statements and parent finanfinan-cial statements give a true and fair view of the Group’s and the parent’s assets, liabilities and financial position at 31 December 2016 and of the results of the Group’s and the parent’s operations as well as the Group’s cash flows for the financial year 1 January - 31 December 2016 in accordance with the Danish Financial Statements Act.
Basis of opinion
We performed our audit in accordance with generally accepted public auditing standards, as the audit is performed on the basis of the provisions of the Danish Act on Energinet.dk. Gener-ally accepted auditing standards are based on the fundamental auditing practices set out in the national audit offices’ international standards (ISSAI 100-999). Our responsibility under these standards and requirements is described in more detail in the
‘Auditor’s responsibility for the audit of the financial statements’ section of the auditor’s report.
The Auditor General is independent of Energinet.dk in accordance with Section 1(6) of the Danish Auditor General Act.
We believe that the audit evidence we have obtained is sufficient and appro-priate to provide a basis for our audit opinion.
Management’s responsibility for the financial statements
Management is responsible for the preparation and fair presentation of financial statements in accordance with the Danish Financial Statements Act. Management is also responsible for the internal control which manage-ment deems to be necessary for the preparation of financial statements that are free from material misstate-ment, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing Energinet.dk’s ability to continue as a going concern; for making disclosures in connection with going concern where relevant; as well as to prepare financial statements on a going concern basis, unless man-agement either intends to liquidate the enterprise or to cease trading, or has no realistic alternative but to do so.
Auditor’s responsibility for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with generally accepted public auditing standards will always detect a material misstatement when it exists. Misstate-ments can arise from fraud or error and are considered material if, individ-ually or in the aggregate, they could reasonably be expected to influence the economic decisions of users of accounting information taken on the basis of these financial statements.
As part of an audit in accordance with generally accepted public auditing standards, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Energinet.dk’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going con-cern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Energinet.dk’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclo-sures in the financial statements or, if such disclosures are inadequate, to
INDEPENDENT AUDITOR’S
RE-PORT
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132 Annual Report 2016Annual report 2016 – financial statements Annual report 2016 – financial statements