AUDIT OF THE FINANCIAL STATEMENTS (PENSIONS)
The purpose of this schedule to our engagement letter is to set out the basis on which we are to audit the financial statements of the pension scheme and the respective areas of responsibility of the trustees and of ourselves.
1. RESPONSIBILITIES OF AUDITOR AND TRUSTEES
1.1 We will conduct our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs”). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. In addition, we read all the non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.