St Elizabeths Centre Annual Report End Dec 2022 FINAL - Flipbook - Page 38
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We assessed the extent of compliance with the laws and regulations
identi昀椀ed above through making enquiries of key management and
review of minutes of Trustees’ meetings.
We assessed the susceptibility of the charity’s 昀椀nancial statements to
material misstatement, including obtaining an understanding of how
fraud might occur, by:
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Making enquiries of key management as to where they considered
there was susceptibility to fraud,
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their knowledge of actual, suspected and alleged fraud; and
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Considering the internal controls in place to mitigate risks of fraud
and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of
controls, we:
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Performed analytical procedures to identify any unusual or
unexpected relationships;
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Tested and reviewed journal entries to identify unusual transactions;
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Tested the authorisation of expenditure;
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Assessed whether judgements and assumptions made in determining
the accounting estimates were indicative of potential bias; and
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Investigated the rationale behind signi昀椀cant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws
and regulations, we designed procedures which included, but were not
limited to:
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Agreeing 昀椀nancial statement disclosures to underlying supporting
documentation;
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Reading the minutes of meetings of Trustees;
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Reading Ofsted and CQC reports; and
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Enquiring of as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described
above. The more removed that laws and regulations are from 昀椀nancial
transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required
to identify non-compliance with laws and regulations to enquiry of key
management and the inspection of regulatory and legal correspondence,
if any.
Material misstatements that arise due to fraud can be harder to
detect than those that arise from error as they may involve deliberate
concealment or collusion.
A further description of our responsibilities for the audit of the 昀椀nancial
statements is located on the Financial Reporting Council’s website at
www.frc.org.uk/auditorsresponsibilities. This description forms part of
our auditor’s report.
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