BASF Report 2021 Consoli dated Financial Statements – Independent Auditor’s Report 191 Responsibilities of the Board of Executive Directors and The Supervisory Board is responsible for overseeing the Group’s fraud may involve collusion, forgery, intentional omissions, the Supervisory Board for the Consolidated Financial financial reporting process for the preparation of the Consolidated misrepresentations, or the override of internal control. Statements and the Group Management Report Financial Statements and of the Group Management Report. – Obtain an understanding of internal control relevant to the audit of The Board of Executive Directors is responsible for the prepa ra - the Consolidated Financial Statements and of arrangements and tion of the Consolidated Financial Statements that comply, in all Auditor’s Responsibilities for the Audit of the Consolidated measures (systems) relevant to the audit of the Group Manage- material respects, with IFRSs as adopted by the EU and the Financial Statements and of the Group Management Report ment Report in order to design audit procedures that are appro- additional require ments of German commercial law pursuant to Our objectives are to obtain reasonable assurance about whether priate in the circumstances, but not for the purpose of expressing Section 315e (1) HGB and full IFRS and that the Consolidated the Consolidated Financial Statements as a whole are free from an opinion on the effectiveness of these systems. Financial Statements, in compliance with these requirements, give a material misstatement, whether due to fraud or error, and whether – Evaluate the appropriateness of accounting policies used by the true and fair view of the assets, liabilities, financial position, and the Group Management Report as a whole provides an appropriate Board of Executive Directors and the reasonableness of estimates financial performance of the Group. In addition, the Board of Execu- view of the Group’s position and, in all material respects, is consis- made by the Board of Executive Directors and related disclosures. tive Directors is responsible for such internal control as they have tent with the Consolidated Financial Statements and the knowledge – Conclude on the appropriateness of the Board of Executive determined necessary to enable the preparation of Consolidated obtained in the audit, complies with the German legal requirements Directors’ use of the going concern basis of accounting and, Financial Statements that are free from material misstatement, and appropriately presents the opportunities and risks of future based on the audit evidence obtained, whether a material whether due to fraud or error. development, as well as to issue an auditor’s report that includes our uncertainty exists related to events or conditions that may cast opinions on the Consolidated Financial Statements and on the significant doubt on the Group’s ability to continue as a going In preparing the Consolidated Financial Statements, the Board of Group Management Report. concern. If we conclude that a material uncertainty exists, we are Executive Directors is responsible for assessing the Group’s ability required to draw attention in the auditor’s report to the related to continue as a going concern. They also have the responsibility for Reasonable assurance is a high level of assurance, but is not a disclosures in the Consolidated Financial Statements and in the disclosing, as applicable, matters related to going concern. In guarantee that an audit conducted in accordance with Sec- Group Management Report or, if such disclosures are inade- addition, they are responsible for financial reporting based on the tion 317 HGB and the EU Audit Regulation and in compliance with quate, to modify our respective opinions. Our conclusions are going concern basis of accounting unless there is an intention to German Generally Accepted Standards for Financial Statement based on the audit evidence obtained up to the date of our liquidate the Group or to cease operations, or there is no realistic Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will auditor’s report. However, future events or conditions may cause alternative but to do so. always detect a material misstatement. Misstatements can arise the Group to cease to be able to continue as a going concern. from fraud or error and are considered material if, individually or in – Evaluate the overall presentation, structure and content of the Furthermore, the Board of Executive Directors is responsible for the the aggregate, they could reasonably be expected to influence Consolidated Financial Statements, including the disclosures, and preparation of the Group Management Report that, as a whole, the economic decisions of users taken on the basis of these whether the Consolidated Financial Statements present the provides an appropriate view of the Group’s position and is, in all Consolidated Financial Statements and this Group Management underlying transactions and events in a manner that the material respects, consistent with the Consolidated Financial Report. Consolidated Financial Statements give a true and fair view of the Statements complies with German legal requirements, and appro- assets, liabilities, financial position and financial performance of priately presents the opportunities and risks of future development. We exercise professional judgment and maintain professional the Group in compliance with IFRSs as adopted by the EU and In addition, the Board of Executive Directors is responsible for skepticism throughout the audit. We also: the additional requirements of German commercial law pursuant such arrangements and measures (systems) as they have consid- – Identify and assess the risks of material misstatement of the to Section 315e (1) HGB and full IFRS. ered necessary to enable the preparation of a Group Management Consolidated Financial Statements and of the Group Manage- – Obtain sufficient appropriate audit evidence regarding the financial Report that is in accordance with the applicable German legal ment Report, whether due to fraud or error, design and perform information of the entities or business activities within the Group requirements, and to be able to provide sufficient appropriate audit procedures responsive to those risks, and obtain audit to express opinions on the Consolidated Financial Statements evidence for the assertions in the Group Management Report. evidence that is sufficient and appropriate to provide a basis for and on the Group Management Report. We are responsible for our opinions. The risk of not detecting a material misstatement the direction, supervision and performance of the group audit. We resulting from fraud is higher than for one resulting from error, as remain solely responsible for our opinions.