b'CHP financial statements 2020/2021Identifying and responding to risks of material Matters on which we are required to report by exceptionmisstatement due to non-compliance with laws Under the Co-operative and Community Benefit Societies and regulations. Act 2014 we are required to report to you if, in our opinion:We identified areas of laws and regulations that couldthe association has not kept proper books of account; orreasonably be expected to have a material effect on thethe association has not maintained a satisfactory system financial statements from our general commercial and sectorof control over its transactions; orexperience, and through discussion with the directors and other management (as required by auditing standards),the financial statements are not in agreement with the and from inspection of the Groups regulatory and legalassociations books of account; orcorrespondence and discussed with the directors andwe have not received all the information and other management the policies and procedures regardingexplanations we need for our audit.compliance with laws and regulations.We have nothing to report in these respects.As the Group is regulated, our assessment of risks involvedBoards responsibilities gaining an understanding of the control environment including the entitys procedures for complying withAs explained more fully in their statement set out on regulatory requirements.page 34, the associations Board is responsible for: the We communicated identified laws and regulationspreparation of financial statements which give a true and fair throughout our team and remained alert to any indicationsview; such internal control as it determines is necessary to of non-compliance throughout the audit.enable the preparation of financial statements that are free The potential effect of these laws and regulations on thefrom material misstatement, whether due to fraud or error; financial statements varies considerably. assessing the group and the associations ability to continue as a going concern, disclosing, as applicable, matters related Firstly, the Group is subject to laws and regulations thatto going concern; and using the going concern basis of directly affect the financial statements including financialaccounting unless it either intends to liquidate the group or reporting legislation (including related co-operative &the association or to cease operations, or has no realistic community benefit society legislation), and taxationalternative but to do so. legislation, pensions legislation and specific disclosuresAuditors responsibilities required by housing legislation and we assessed the extentOur objectives are to obtain reasonable assurance about of compliance with these laws and regulations as part of ourwhether the financial statements as a whole are free from procedures on the related financial statement items.material misstatement, whether due to fraud or error, and Secondly, the Group is subject to many other laws andto issue our opinion in an auditors report. Reasonable regulations where the consequences of non-complianceassurance is a high level of assurance, but does not could have a material effect on amounts or disclosures inguarantee that an audit conducted in accordance with ISAs the financial statements, for instance through the imposition(UK) will always detect a material misstatement when it of fines or litigation or the need to include significantexists. Misstatements can arise from fraud or error and are provisions. We identified the following areas as those mostconsidered material if, individually or in aggregate, they could likely to have such an effect: health and safety, employmentreasonably be expected to influence the economic decisions and general data protection recognising the regulatedof users taken on the basis of the financial statements.nature of the Groups activities. Auditing standards limit theA fuller description of our responsibilities is provided on the required audit procedures to identify non-compliance withFRCs website at www.frc.org.uk/auditorsresponsibilities.these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legalThe purpose of our audit work and to whom we owe our correspondence, if any. Therefore, if a breach of operationalresponsibilitiesregulations is not disclosed to us or evident from relevantThis report is made solely to the association in accordance correspondence, an audit will not detect that breach. with section 87 of the Co-operative and Community Other information Benefit Societies Act 2014 and section 128 of the Housing The associations Board is responsible for the otherand Regeneration Act 2008. Our audit work has been information, which comprises [the Boards Strategic Reportundertaken so that we might state to the association those and the Statement on Internal Control. Our opinion on thematters we are required to state to it in an auditors report financial statements does not cover the other informationand for no other purpose. To the fullest extent permitted by and, accordingly, we do not express an audit opinion or,law, we do not accept or assume responsibility to anyone except as explicitly stated below, any form of assuranceother than the association as a body, for our audit work, for conclusion thereon. this report, or for the opinions we have formed. Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements orfor and on behalf of KPMG LLP, Statutory Auditorour audit knowledge. Based solely on that work, we have notChartered Accountants, 15 Canada Square, London, E14 5GL Financial statementsidentified material misstatements in the other information.20 September 2021 38 39'