Financial Statements 2023

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In addition, we identified the following fraud risks requiring significant attention during our audit:

Risks related to management override of controls in the determination of margin at completion and recoverability of key program assets Fraud risk In our audit we gave significant attention to the judgments and assumptions made by management in the determination of the provision for onerous contracts, specifically the contract margin, the impairment of assets especially related to the recoverability of assets for key programs and the program-related provisions and depreciations, and considered whether the judgments and assumptions indicated a management override of controls that may represent a risk of material misstatement due to fraud. We describe the audit procedures responsive to the assessed risk of fraud in the description of our audit approach for the key audit matters: • Estimations related to revenues and costs at completion for the accounting of onerous contracts and material over time contracts • Recoverability of key program assets - long-lived assets Our audit approach

Risks of fraud in revenue recognition Fraud risk

When identifying and assessing fraud risks, we presumed that there are risks of fraud in revenue recognition. In our audit we gave significant attention to the cut-off risk of cost incurred for performance obligations satisfied over time and the cut-off risk on transfer of control for performance obligations satisfied at a point in time. We describe the audit procedures responsive to the risks of fraud in revenue recognition in the description of our audit approach for the key audit matter Revenue recognition.

Our audit approach

We considered available information and made enquiries of relevant executives, directors (including internal audit, legal, compliance, human resources and divisional directors) and the board of directors.

The fraud risks we identified, enquiries and other available information did not lead to specific indications of fraud or suspected fraud potentially material to the financial statements. Our audit response related to risks of non-compliance with laws and regulations We performed appropriate audit procedures regarding compliance with the provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. Furthermore, we assessed factors related to the risks of non-compliance with laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general industry experience, through discussions with the board of directors, reading minutes, reading of internal audit and compliance reports, and performing substantive tests of details of classes of transactions, account balances or disclosures. Specifically, we have evaluated that the disclosures in note 38 of the financial statements reflect the current status of the most significant investigations regarding suspected breaches of law and regulations. We also evaluated the appropriateness of the contingent liability disclosure (note 24) in the financial statements.

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Airbus

Financial Statements 2023