Statutory & Regulatory Audit

TThe audit Services conducted by the successful Auditor must be conducted in accordance with

International Standards on Auditing (UK and Ireland) issued from time to time by the Financial Reporting

Council.

The role of the external Auditor will be to report on the financial statements of SWS (or any corporate

member of the Greensands Holdings Group as applicable); to carry out the necessary assessments of the

statements and underlying records and control systems in order to reach a fair and unbiased opinion on

the statements.

Audits must be able to provide assurance that the financial statements are free from material

misstatement and give a true and fair view. The successful Auditor must obtain an understanding of the

accounting and the internal control systems in order to assess their adequacy as a basis for the

preparation of the financial statements and to form an opinion whether adequate accounting records

have been maintained by the relevant audited company.

In addition to the regulatory audit required by Ofwat, SWS is also seeking to renew additional assurance

on an “Agreed Upon Procedures” basis for other elements of its annual reporting, for example, but not

limited to sections of the Annual Performance Report not covered by the Ofwat requirements and the

viability statement

The auditor will carry out such investigations as to enable them to form an opinion as to:

(a) whether adequate accounting records have been kept by SWS and returns adequate for the audit

(b) whether SWS’s individual financial statements are in agreement with the accounting records and

returns.

(c) whether certain disclosures of directors’ remuneration specified by law have been made.

(d) whether they have obtained all the information and explanations which, to the best of their

knowledge and belief, are necessary for the purpose of our audit; and

The Auditor should provide a management report to SWS which highlights any potential issues, or risks

within the audit that was conducted. The Auditor should provide reports on the financial statements of

SWS income and expenditure, recognised gains and losses and statement of cash flow for the year. They

should take into account relevant statutory and other mandatory disclosure and accounting requirements

and funding body requirements.

The audit services conducted by the successful Auditor must be conducted in accordance with

International Standards on Auditing (UK and Ireland) issued from time to time by the Financial Reporting

Council, relevant ethical standards and applicable law.