Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below: As part of designing our audit, we determined materiality and assessed the
risks of material misstatement in the financial statements, including how fraud may occur by enquiring of
management of its own consideration of fraud. In particular, we looked at where management made
subjective judgements, for example in respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently uncertain. We also considered potential
financial or other pressures, opportunity and motivations for fraud. As part of this discussion, we identified the
internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations and
how management monitor these processes. Appropriate procedures included the review and testing of
manual journals and key estimates and judgements made by management. We gained an understanding of
the legal and regulatory framework applicable to the company and the industry in which it operates, drawing
on our broad sector experience, and considered the risk of acts by the company that were contrary to these
laws and regulations, including fraud. We focused on laws and regulations that could give rise to a material
misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax
legislation and equivalent local laws and regulations. We made enquiries of management with regards to
compliance with the above laws and regulations and corroborated any necessary evidence to relevant
information, for example, minutes of the management meetings held, and any other considered suitable
documentation provided. We completed a sample of monthly management accounts with a focus on the
income, expenditure and cash balances throughout the period to ensure that activities were supported and in
line with company practices. Any unusual findings were raised with the directors for further investigation. Our
tests included agreeing the financial statements disclosures to underlying supporting documentation and
enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud.
As in all of our audits, we also addressed the risk of management override of internal controls including
testing journals and evaluation whether there was evidence of bias by the directors that represented a risk of
material misstatement due to fraud. Our audit procedures were designed to respond to risks of material
misstatement in the financial statements, recognising that the risk of not detecting a material misstatement
due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate
concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations
in the audit procedures performed and the further removed non-compliance with laws and regulations is from
the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Councils website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor's report.
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