Page 105 - Beeks Financial Cloud Group Annual Report 2021
P. 105
Beeks Financial Cloud Group PLC
Independent Auditors’ Report to the members of Beeks Financial Cloud PLC For the year ended 30 June 2021
The extent to which our procedures of the parent company’s / Our assessment of the
are capable of detecting financial statements to material appropriateness of the collective
irregularities, including fraud, is misstatement, including how competence and capabilities of
detailed below: fraud might occur, by evaluating the engagement team included
/ We obtained an understanding management’s incentives and consideration of the engagement
of the legal and regulatory opportunities for manipulation team’s:
frameworks applicable to the of the financial statements. Our - Understanding of, and practical
parent company and the industry audit procedures were designed experience with, engagements
in which it operates through our to provide reasonable assurance of similar nature and complexity,
general commercial and sector that the financial statements through appropriate training and
experience. We determined the were free from fraud or error. participation; and
following laws and regulations However, detecting irregularities - Knowledge of the industry
were most significant: Financial that result from fraud is inherently in which the parent company
Reporting Standard 101 ‘Reduced more difficult than detecting operates.
Disclosure Framework’, the those that result from error, as / Our communications, both
Companies Act 2006 and the those irregularities that result with management and the FINANCE
Quoted Companies Alliance from fraud may involve collusion, Audit Committee, in respect of
(QCA) Corporate Governance deliberate concealment, forgery non-compliance with laws and
Code. In addition, we concluded or intentional misrepresentation. regulations and fraud pertain to
that there are certain sector laws The procedures included: inaccurate assumptions included
and regulations that may impact - Evaluation of the design within the investment impairment
the financial statements, namely effectiveness of controls that assessment. This is reported as
GDPR regulations and Information management has in place to key audit matter in the relevant
Security Management System prevent and detected fraud; section of our report where the
(ISMS) Standards; - Journal entry testing, with a matter is explained in more detail;
/ We obtained an understanding focus on manual journals with a / In assessing the potential risk
of how the parent company is profit impact; of material misstatement, we
complying with these legal and - Challenging assumptions obtained an understanding of:
regulatory frameworks by making and judgements made by - The operations of the parent
enquiries of management, the management in areas of company, including the objectives
Audit Committee and reviewing estimation and judgement; and strategies, in order to
legal correspondence. We - Assessing the extent of understand the classes of
corroborated our enquiries compliance with the relevant laws transactions, account balances,
through a review of board minute and regulations as part of our expected disclosures and risk
papers. Management and the procedures on legal expenditure; areas; and
Audit Committee confirmed they and - The control environment,
were not aware of any instances - Performing audit procedures to including the policies and
of non-compliance and had no test whether all the disclosures procedures implemented
knowledge of actual, suspected or required by FRS 101 and the to comply with regulatory
alleged fraud; Companies Act 2006 were made requirements, including the
/ We assessed the susceptibility in the financial statements. adequacy of the training to inform
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