Siren Gold Limited Annual Report 2020

Independent Auditor’s Report Independent Auditor’s Report To the Members of Siren Gold Limited (Continued) Key audit matter How our audit addressed the key audit matter likely to proceed, the carrying amount of the exploration asset is unlikely to be recorded in full from successful development or sale.  We also assessed the appropriateness of the related disclosures in note 8 to the financial statements. Accounting for share based payments As disclosed in note 15 to the financial statements, during the year ended 31 December 2020 the Consolidated Entity incurred share based payments of $675,490 of which $270,250 was recorded in capital raising costs and the remaining balance of $405,240 was recognised as share based payments expense in the income statement. Share based payments are considered to be a key audit matter due to - the value of the transactions; - the complexities involved in the recognition and measurement of these instruments; and - the judgement involved in determining the inputs used in the valuations. Management used the Black-Scholes option valuation model to determine the fair value of the options granted. This process involved significant estimation and judgement required to determine the fair value of the equity instruments granted. Our procedures amongst others included: Analysing agreements to identify the key terms and conditions of share based payments issued and relevant vesting conditions in accordance with AASB 2 Share Based Payments; Evaluating management’s Black-Scholes Valuation Models and assessing the assumptions and inputs used; Assessing the amount recognised during the year in accordance with the vesting conditions of the agreements; and Assessing the adequacy of the disclosures included in Note 15 to the financial statements. Other Information The directors are responsible for the other information. The other information comprises the information included in the Consolidated Entity’s annual report for the year ended 31 December 2020, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. for the year ended 31 December 2020 Siren Gold Limited 56