Auditor’s report
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INDEPENDENT AUDITOR’S REPORT
To the Annual Shareholders' Meeting of Jotun A/S
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Jotun A/S comprising the financial statements of the parent
company and the Group. The financial statements of the parent company comprise the financial position
as at 31 December 2020, the income statement, statement of comprehensive income, statements of cash
flows and changes in equity for the year then ended and notes to the financial statements, including a
summary of significant accounting policies. The consolidated financial statements comprise the financial
position as at 31 December 2020, the income statement, the statements of comprehensive income, cash
flows and changes in equity for the year then ended and notes to the financial statements, including a
summary of significant accounting policies.
In our opinion,
► the financial statements are prepared in accordance with the law and regulations
► the financial statements present fairly, in all material respects, the financial position of the parent
company as at 31 December 2020, and of its financial performance and its cash flows for the
year then ended in accordance with the Norwegian Accounting Act and accounting standards and
practices generally accepted in Norway
► the consolidated financial statements present fairly, in all material respects the financial position
of the Group as at 31 December 2020 and of its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards as adopted by
the EU
Basis for opinion
We conducted our audit in accordance with laws, regulations, and auditing standards and practices
generally accepted in Norway, including International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the financial
statements section of our report. We are independent of the Company and the Group in accordance with
the ethical requirements that are relevant to our audit of the financial statements in Norway, and we have
fulfilled our ethical responsibilities as required by law and regulations. We have also complied with our
other ethical obligations in accordance with these requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Other information
Other information consists of the information included in the Company’s annual report other than the
financial statements and our auditor’s report thereon. The Board of Directors and Chief Executive Officer
(management) are responsible for the other information. Our opinion on the financial statements 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 statements, our responsibility is to read the other information,
and, in doing so, consider whether the other information is materially inconsistent with the financial
statements 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.
2
Responsibilities of management for the financial statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with the Norwegian Accounting Act and accounting standards and practices generally
accepted in Norway for the financial statements of the parent company and International Financial
Reporting Standards as adopted by the EU for the financial statements of the Group, and for such internal
control as management determines is necessary to enable 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 Company’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 Company or to
cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities 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 ISAs 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 law, regulations and generally accepted auditing principles in
Norway, including ISAs, 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 the
Company’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 concern 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 Company’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 Company to cease to continue as a going concern;
► evaluate the overall presentation, structure and content of the financial statements, including the disclosures, 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.
Independent auditor's report - Jotun A/S
A member firm of Ernst & Young Global Limited
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68 I Jotun Annual Report 2020
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