2 Key Audit Matters Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial statements of the current period. These matters were addressed in the context of my audit of the financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters. I have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of my report, including in relation to these matters. Accordingly, my audit included the performance of procedures designed to respond to my assessment of the risks of material misstatement of the financial statements. The results of my audit procedures, including the procedures performed to address the matters below, provide the basis for my audit opinion on the accompanying financial statements as a whole. Key audit matter and how audit procedures respond for are described below. Allowance for diminution in value of inventories As mentioned in Note 9 to the consolidated financial statements, regarding inventories as at 31 December 2023, the Group’s cost of inventories amounted to Baht 34,019 million and the recorded allowance for diminution in value of inventories was Baht 1,606 million. I focused on consideration of allowance for diminution in value of inventories to net realisable value because the Group’s inventories are mainly raw materials and finished goods that are commodities of which prices are volatile. This may affect the value of inventories at the end of the reporting period and the inventory balance is material to the financial statements. Inventories are measured at the lower of cost or net realisable value and this, together with determination of the related allowance for diminution in value of inventories, requires the management to consider the reasonableness of the market price used, by comparing it to the expected selling price of the commodities. The procedures I performed to assess the determination of allowance for diminution in value of inventories included: - Gaining an understanding and performing tests of the design and operating effectiveness of the controls relevant to the inventory valuation process. - Assessing the appropriateness of the methodology used to calculate the net realisable value of inventories at the end of the reporting period, through considering the reasonableness of the market prices used by comparing them to the expected selling prices of commodities and testing the accuracy of the calculations. 281 56-1 ONE REPORT 2023 Independent Auditor’s Report
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