The Edinburgh Investment Trust Plc Annual Financial Report 2022 - Flipbook - Page 49
THE EDINBURGH INVESTMENT TRUST PLC / FINANCIAL REVIEW / 47
Independent Auditor’s Report
To the members of The Edinburgh Investment Trust plc
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
In our opinion, The Edinburgh Investment Trust plc’s financial statements:
–give a true and fair view of the state of the Company’s affairs as at 31 March 2022 and of its return and cash flows for the year then
ended;
–have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and
applicable law); and
–
have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Annual Financial Report (the “Annual Report”), which comprise: the
Balance Sheet as at 31 March 2022; the Income Statement, the Statement of Changes in Equity and the Cash Flow Statement for the year
then ended; and the notes to the financial statements, which include a description of the significant accounting policies.
Our opinion is consistent with our reporting to the Audit Committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities
under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest entities, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were not provided.
We have provided no non-audit services to the Company in the period under audit.
Our audit approach
Overview
– Overall materiality: £11,758,000 (2021: £10,912,000) based on 1% of Net Assets.
– Performance materiality: £8,818,000 (2021: £8,184,000).
–The Company is a standalone Investment Trust Company and engages Liontrust Fund Partners LLP
(previously Majedie Asset Management Limited) (the “Manager”) to manage its assets.
–We conducted our audit of the financial statements using information from Bank of New York Mellon
(International) Limited (the “Administrator” and the “Custodian”) and Sanne Fund Services (UK) Limited
(formerly PraxisIFM Fund Services (UK) Limited) (the “Company Secretary”). The Manager has, with the
consent of the directors, delegated the provision of certain administrative functions to the Administrator.
The Company has appointed the Custodian and Company Secretary.
–We tailored the scope of our audit taking into account the types of investments within the Company,
the involvement of the third parties referred to above, the accounting processes and controls, and the
industry in which the Company operates.
–We obtained an understanding of the control environment in place at both the Manager and the
Administrator, and adopted a fully substantive testing approach using reports obtained from the
Administrator.