BIRLESIM_2022 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2022 FAALİYET RAPORU 124 INDEPENDENT AUDITOR’S REPORT Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matters How the Matter is Handled Revenue The accounting policies related to the recognition of revenue from the Group’s long-term mechanical and electrical installation contracts, as well as the significant accounting judgments, estimates, and assumptions used, are presented in Note 2 and Note 22. Revenue is recognized in the consolidated financial statements based on the performance obligations of the Group being satisfied and the transfer of control over the products and services to the customer, in accordance with IFRS 15 “Revenue from Contracts with Customers.” For ongoing construction and contracting contracts, the Group applies the percentage of completion method to determine revenue and costs. Significant assumptions are used in determining the percentage of completion and total project costs. Due to the significance of revenue within the consolidated financial statements and its increase compared to the previous year, as well as the significant estimates involved in determining total project costs and the percentage of completion, revenue has been identified as a key audit matter. The audit procedures applied during our audit work related to the recognition of revenue are as follows: - The appropriateness of the Group’s accounting policy for revenue recognition has been evaluated. - The estimated completion costs that impact the recognition of revenue under the percentage of completion method and the reasonableness of management’s assumptions, expectations, and judgments have been assessed. - Direct confirmations obtained from external parties, selected through sampling, have been used to test the existence and accuracy of trade receivables for the selected customers. - The disclosures in the notes to the consolidated financial statements regarding the recognition of revenue have been reviewed, and the adequacy of the information provided in these notes has been assessed in terms of IFRS (International Financial Reporting Standards). Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with TAS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is 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 management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group’s financial reporting process.