CARRTER (UK) PENSTON SCHEME YEAR ENDED 31 DECEMBER 2O2O Independent auditors'report to the Trustee of Carrier (UK) Pension Scheme ln connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. lf we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. lf, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.
Responsibilities for the financial statements arrd the atrclit Responsibilities oJ the Trustee for the linanciq.l staternents
As explained more fully in the statement of Trustee's responsibilities, the Trustee is responsible for ensuring that the financial statements are prepared in accordanqe with the applicable framework and for being satisfied that they show a true and fair view. The Trustee is also responsible for such internal control as it determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. ln the preparation of the financial statements, the Trustee is responsible for assessing the $cheme's ability to continue as a going concern, disclosing, as apBlicable, matters related to going concern and using the going con_cern basis of accounting unlegs the Trustee either intends to wind up the Scheme, or has no realistic alternative but to do ss. Auditors' respons ib ilitios for th e 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 auditors' 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 lSAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered-m?terial if, individually or in the aggregate, they could reasonably be expected to influence the economie decisions ef users taken on the basis of these financial statements. lrregularities, including fraud, are instances bf non-compliance with laws and regulations. We design procedures in llne 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. Based on our understanding of the Scheme and its environment, we identified thaf the principal risks of non- compliance with laws and regulations related to the administration of the Scheme in accordance with the Pensions Acts 1995 and 20Q4 and regulations made under them, and codes of practice issued by the Pensions Regulator; and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered the direct impact of these laws and regulations on the financial statements. We evaluated incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, by the Trustee and those responsible for, or involved in, the preparation of the underlying accqunting records and financial statements, and determined that the principal risks were related to'posting inappropriate journals to conceal misappropriation of assets and inappropriate adjustments of asset valuations. Audit procedures performed included: o Testing of journals where we identified particular risk criteria. o Qbtaining independent confirmations of material investment valuations and cash balances at the year end. o Reviewing estimates and judgements made'in the preparation of the financial statements. . Reviewing meeting minutes, any correspondence with the Pensions Regulator, contra9ts and agreements, and holding discussions with the Trustee to identify significant or unusual tt'ansactions and known or suspected instances of fraud or non-compliance with laws and regulations.
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