Financial Accounting

School: EDHEC Business School, Roubaix - Course: FINANCE 846 - Subject: Accounting

Financial Accounting & reporting Lecture 2 Exercice booklet page Audit page 26/41 1- Who are the statutory auditors of LVMH? Explain why LVMH decided touse two audit firms. All firm consolidated are required by law to have two audit firms. LVMH has a lot of subsidiaries so it is expected Consolidated financial statements page 183 Page 84/86 : 2 auditors mazars and EY 3. Who is responsible for the preparation of the financialstatements? As of December 31, 2019, our audit firms were in the fourth consecutive year of their engagement, it being specified that ERNST & YOUNG et Autres and ERNST & YOUNG Audit, members of the international EY network, were respectively Statutory Auditors from 2010 to 2015 and from 1988 to 2009 Page 265 Objectives and audit approach Our role is to issue a report on the consolidated financial statements. Our objective is to obtain reasonable assurance as to whether the consolidated financial statements taken as a whole are free from material misstatement. PAGE 265 Material misstatementlarge error 4. What is the responsibility of the auditors? In compliance with the engagement entrusted to us by your Shareholders' Meeting, we have audited the accompanying consolidated financial statements of LVMH Moët Hennessy - Louis Vuitton for the fiscal year ended December 31, 2019. In our opinion, the consolidated financial statements give a true and fair view of the Group's assets, liabilities and financial position as of December 31, 2019 and of the results of its operations for the fiscal year then ended in accordance with International Financial Reporting Standards as adopted by the European Union. The audit opinion expressed above is consistent with our report to the Performance Audit Committee. PAGE 88 What are the accounting standards followed by LVMH? IFRS What is the conclusion of the auditor's report? UNQUALIFIED OPINION : (is the best possible outcome that you could have) In our opinion, the consolidated financial statements give a true and fair view of the Group's assets, liabilities and financial position as of December 31, 2019 and of the results of its operations for the fiscal year then ended in accordance with International Financial Reporting Standards as adopted by the European Union. PAGE 88 7. When were the auditors appointed? How much is LVMH paying to the auditors? (Note: the information is not available in the financial

statements, you need to refer to the Universal Registration Document) Appointment of the Statutory Auditors Our audit firms were appointed as Statutory Auditors of LVMH Moët Hennessy - Louis Vuitton by your Shareholders' Meeting held on April 14, 2016. As of December 31, 2019, our audit firms were in the fourth consecutive year of their engagement, it being specified that ERNST & YOUNG et Autres and ERNST & YOUNG Audit, members of the international EY network, were respectively Statutory Auditors from 2010 to 2015 and from 1988 to 2009