Company: ARBK
Filing Date: 2025-05-09
Form Type: 6-K
Source: 0001654954-25-005344
Chunk: 41

Company: Argo Blockchain Plc
Filing Date: 2025-05-09
Form: 6-K
Chunk 41
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, as revenue is generated solely through its subsidiaries. A key management target is to minimise parent company expenditure, in order to maximise the utilisation of funds within the trading subsidiaries. Materiality for the subsidiaries has been calculated based on their financial significance to the group, capped at group performance materiality.

These significant components of the group, were audited to a level of materiality ranging from US$225,000 to US$405,000 (2023: $89,000 to US$505,000).

Performance materiality for the group financial statements was set at US$450,000 (2023: $455,000) and the parent company was set at US$110,000 (2023: $191,100), being 60% of materiality for the financial statements as a whole. The performance materiality for the group and all components is based on our assessment of the relevant risk factors e.g. previous experience of misstatements, management’s attitude towards proposed adjustments, and the level of estimation inherent within the group and the subsidiaries including the parent company.

We agreed to report to those charged with governance all corrected and uncorrected misstatements we identified through our audit with a value in excess of US$37,500 (2023: $37,000) for the group and for the parent company a value in excess of US$9,500 (2023: $15,925). We also agreed to report any other audit misstatements below that threshold that we believe warranted reporting on qualitative grounds

#### Our approach to the audit
The scope of our audit was influenced by our application of materiality. The quantitative and qualitative thresholds for materiality determine the scope of our audit and the nature, timing and extent of our audit procedures. In particular, we looked at areas involving significant accounting estimates and judgement by the Directors, and those areas assessed to be Key Audit Matters as presented below. We also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.

We assessed all components of the group for their significance in order to determine the extent of the work to be performed on them in order to obtain sufficient and appropriate audit evidence on which to base the group audit opinion. Those entities of the group which were considered to be significant components, being Argo Blockchain plc, Argo Innovation Labs Inc and Argo Operating US LLC, were subject to full scope audit procedures by PKF Littlejohn LLP. Procedures were performed