KCHC Annual Review 2023-24 WEB Singles - Flipbook - Page 43
Independent auditor’s report to the members of King’s College Hospital Charity
• Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but not
for the purposes of expressing an opinion on the
effectiveness of the charitable company’s internal
control.
• Evaluate the appropriateness of accounting
policies used and the reasonableness of accounting
estimates and related disclosures made by the
trustees.
• Conclude on the appropriateness of the trustees’ use
of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions
that may cast significant doubt on the charitable
company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report
to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s
report. However, future events or conditions may
cause the charitable company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures, and whether the financial statements
represent the underlying transactions and events in
a manner that achieves fair presentation.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal
control that we identify during our audit:
The objectives of our audit in respect of fraud, are; to
identify and assess the risks of material misstatement
of the financial statements due to fraud; to obtain
sufficient appropriate audit evidence regarding the
assessed risks of material misstatement due to fraud,
through designing and implementing appropriate
responses to those assessed risks; and to respond
appropriately to instances of fraud or suspected fraud
identified during the audit. However, the primary
responsibility for the prevention and detection of
fraud rests with both management and those charged
with governance of the charitable company.
Our approach was as follows:
• We obtained an understanding of the legal and
regulatory requirements applicable to the charitable
company and considered that the most significant
are the Companies Act 2006, the Charities Act
2011, the Charity SORP, and UK financial reporting
standards as issued by the Financial Reporting
Council.
• We obtained an understanding of how the charitable
company complies with these requirements by
discussions with management and those charged
with governance.
• We assessed the risk of material misstatement of the
financial statements, including the risk of material
misstatement due to fraud and how it might occur,
by holding discussions with management and those
charged with governance.
• We inquired of management and those charged
with governance as to any known instances of noncompliance or suspected non-compliance with laws
and regulations.
Explanation as to what extent the audit
was considered capable of detecting
irregularities, including fraud
• Based on this understanding, we designed specific
appropriate audit procedures to identify instances
of non-compliance with laws and regulations. This
included making enquiries of management and
those charged with governance and obtaining
additional corroborative evidence as required.
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.
There are inherent limitations in the audit procedures
described above. We are less likely to become aware of
instances of non-compliance with laws and regulations
that are not closely related to events and transactions
reflected in the financial statements. Also, the risk of
not detecting a material misstatement due to fraud is
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