TRUSTEES ANNUAL REPORT AND FINANCIAL STATEMENT FOR SHARED INTEREST FOUNDATION 2024/25 - Report - Page 9
INDEPENDENT AUDITORS’ REPORT
Auditor’s responsibilities for the audit of the
financial statements
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.
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 extent to which our procedures are capable of
detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of
material misstatement in respect of irregularities, including
fraud and non-compliance with laws and regulations, was as
follows:
•
•
the engagement partner ensured that the engagement
team collectively had the appropriate competence,
capabilities and skills to identify or recognise noncompliance with applicable laws and regulations and in
particular, adherence to the Charities Act;
we identified the laws and regulations applicable to the
charitable company through discussions with Trustees
and other management and review of appropriate
industry knowledge;
•
we assessed the extent of compliance with the laws and
regulations identified above through making enquiries of
management; and
•
identified laws and regulations were communicated
within the audit team regularly and the team remained
alert to instances of non-compliance throughout the
audit.
in accordance with auditing standards. For example, as with
any audit, there remained a higher risk of non-detection
of irregularities, as these may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal controls. We are not responsible for preventing fraud
or non-compliance with laws and regulations and cannot be
expected to detect all fraud and non-compliance with laws
and regulations.
A further description of our responsibilities for the audit of
the financial 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.
Use of our 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. 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 in an Auditor’s Report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the charitable
company and its members, as a body, for our audit work, for
this report, or for the opinions we have formed.
Simon Turner (Senior statutory auditor)
Armstrong Watson Audit Limited
Chartered Accountants
Statutory Auditors
Newcastle upon Tyne
Date:
We assessed the susceptibility of the charitable company
financial statements to material misstatement, including
obtaining an understanding of how fraud might occur, by:
•
making enquiries of management as to where they
considered there was susceptibility to fraud, their
knowledge of actual, suspected and alleged fraud; and
•
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:
•
performed analytical procedures as a risk assessment
tool to identify any unusual or unexpected relationships;
and
•
tested journal entries to identify 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:
•
agreeing financial statement disclosures to underlying
supporting documentation; and
•
enquiring of management as to actual and potential
litigation and claims.
Due to the inherent limitations of an audit, there is an
unavoidable risk that we may not have detected some
material misstatements in the financial statements, even
though we have properly planned and performed our audit
Shared Interest Foundation - Trustees’ Report and Financial Statements for the year ended 30 September 2022
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