Annual Report and Financial Statements 2022-2023 - Flipbook - Page 24
We have nothing to report in respect of the following
matters in relation to which the Companies Act 2006
or the Charities Accounts (Scotland) Regulations 2006
requires us to report to you if, in our opinion:
4 adequateaccountingrecordshavenotbeenkeptby
the parent charitable company, or returns adequate
for our audit have not been received from branches
not visited by us; or
4 theparentcharitablecompany=sonancialstatements
are not in agreement with the accounting records
and returns; or
4 certaindisclosuresofDirectors=remuneration
specified by law are not made; or
4 wehavenotreceivedalltheinformationand
explanations we require for our audit; or
4 theTrusteeswerenotentitledtopreparethe
financial statements in accordance with the small
companies’ regime and take advantage of the small
companies’ exemptions in preparing the Directors’
report and from the requirement to prepare a
strategic report.
RESPONSIBILITIES OF TRUSTEES
As explained more fully in the Trustees’ responsibilities
statement included in the Trustees’ Annual Report,
the Trustees (who are also the Directors of the
charitable company for the purposes of company law)
are responsible for the preparation of the financial
statements and for being satisfied that they give a
true and fair view, and for such internal control as
the Trustees determine is necessary to enable the
preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees
are responsible for assessing the group’s and parent
charitable company’s ability to continue as a going
concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of
accounting unless the Trustees either intend to liquidate
the group or the parent charitable company or to cease
operations, or have no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE
AUDIT OF THE FINANCIAL STATEMENTS
We have been appointed as auditor under section 44(1)
(c) of the Charities and Trustee Investment (Scotland)
Act 2005 and under the Companies Act 2006 and
report in accordance with regulations made under those
Acts.
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate,
they could reasonably be expected to influence the
economic decisions of users taken on the basis of these
financial statements.
24TCV Annual Report and Financial Statements 2022-23
Irregularities, including fraud, are instances of noncompliance 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 specific procedures
for this engagement and the extent to which these are
capable of detecting irregularities, including fraud is
detailed below:
4 Obtaininganunderstandingofthelegaland
regulatory frameworks that the entity operates in,
focusing on those laws and regulations that had a
direct effect on the financial statements;
4 Enquiryofmanagementtoidentifyanyinstancesof
known or suspected instances of fraud;
4 Enquiryofmanagementandthosechargedwith
governance around actual and potential litigation
and claims;
4 EnquiryofmanagementaboutanyinstancesofnonD
compliance with laws and regulations;
4 Reviewingthedesignandimplementationofcontrol
systems in place;
4 Testingtheoperationalefectivenessofthecontrols1
4 Performingauditworkovertheriskofmanagement
override of controls, including testing of journal
entries and other adjustments for appropriateness;
4 Evaluatingthebusinessrationaleofsigniocant
transactions outside the normal course of business,
and reviewing accounting estimates for bias;
4 Reviewingminutesofmeetingsofthosecharged
with governance;
4 Reviewingonancialstatementdisclosuresandtesting
to supporting documentation to assess compliance
with applicable laws and regulations.
Because of the inherent limitations of an audit, there is
a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial
statements or non-compliance with regulation. This
risk increases the more that compliance with a law or
regulation is removed from the events and transactions
reflected in the financial statements, as we will be less
likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring
due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or
misrepresentation.
A further description of our responsibilities for the audit
of the financial statements is located on the Financial
Reporting Council’s website at: https://www.frc.org.
uk/Our-Work/Audit/Audit-and-assurance/Standardsand-guidance/Standards-and-guidance-for-auditors/
Auditors-responsibilities-for-audit/Description-ofauditors-responsibilities-for-audit.aspx.
This description forms part of our auditor’s report.
USE OF THIS REPORT
This report is made solely to the charitable company’s
members, as a body, in accordance with Chapter 3 of
Part 16 of the Companies Act 2006 and to the charitable
company’s Trustees, as a body, in accordance with
Regulation 10 of the Charities Accounts (Scotland)
Regulations 2006. Our audit work has been undertaken
so that we might state to the charitable company’s
members those matters we are required to state to them
