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  "documentTitle": "Eurofins Scientific SE (ERF)",
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  "notes": "The slide uses a table to highlight the discrepancy between consolidated audit coverage and statutory audit coverage percentages.",
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      "kind": "callout",
      "text": "Eurofins commissions statutory audits covering nearly 100% of its external sales, EBITDA and total assets, even when this is not required by local regulation. These are performed mostly by Tier 1 and Tier 2 audit firms.",
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      "text": "Eurofins' claim in its response that \"Eurofins commissions statutory audits covering nearly 100% of its external sales, EBITDA and total assets, even when this is not required by local regulation. These are performed mostly by Tier 1 and Tier 2 audit firms\" sounds good, but is misleading.",
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      "text": "Eurofins' claim in its response that \"Eurofins commissions statutory audits covering nearly 100% of its external sales, EBITDA and total assets, even when this is not required by local regulation. These are performed mostly by Tier 1 and Tier 2 audit firms\" sounds good, but is misleading.\nIn the Annual Report,1 Eurofins discloses that 71% of external sales is covered by the audit of the consolidated financial statements, whereas the June 25th PR2 referred to its statutory audit coverage: two different concepts. We find this particularly misleading.\nThe Annual Report disclosure implies that Deloitte, the global auditor, does not cover 29% of Eurofins' third-party revenue (ie. neither a review nor an audit is completed to ensure this portion of Eurofins' business is free from material misstatements).\nIn our opinion, Deloitte's work is highly disconnected from the Statutory audits, and one should not take comfort in Eurofins' statutory audit coverage. Note that Deloitte's audit usually concludes months before the statutory financials are filed.",
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      "text": "audit coverage: 71%",
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      "text": "\"Eurofins commissions statutory audits covering nearly 100% of its external sales, EBITDA and total assets, even when this is not required by local regulation. These are performed mostly by Tier 1 and Tier 2 audit firms\" — Eurofins Scientific Press Release 6-25-24.",
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      "text": "1 Eurofins Scientific Annual Report 2023, Pg. 216. 2 Eurofins Scientific Press Release 6-25-24.",
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      "text": "Eurofins' Response About Audit Coverage is Misleading",
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