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108 The certificate and report of the Comptroller and Auditor General to the Houses of Parliament

Responsibilities of the Accounting Identifying and assessing potential risks
related to non-compliance with laws
Officer for the financial statements
and regulations, including fraud
As explained more fully in the Statement of Accounting
In identifying and assessing risks of material misstatement
Officer's Responsibilities, the Accounting Officer
in respect of non-compliance with laws and regulations,
is responsible for:
including fraud, we considered the following:
• maintaining proper accounting records; • the nature of the sector, control environment and
• the preparation of the financial statements and operational performance including the design
annual report in accordance with the applicable of NHS Resolution's accounting policies, key
financial reporting framework and for being performance indicators and performance incentives.
satisfied that they give a true and fair view; • inquiring of management, NHS Resolution's
Head of Internal Audit and those charged with
• ensuring that the Annual report and accounts
governance, including obtaining and reviewing
as a whole is fair, balanced and understandable;
supporting documentation relating to NHS
• internal controls as the Accounting Officer
Resolution's policies and procedures relating to:
determines is necessary to enable the preparation
- identifying, evaluating and complying with
of financial statement to be free from material
laws and regulations and whether they were
misstatement, whether due to fraud or error; and
aware of any instances of non-compliance;
• assessing NHS Resolution's ability to continue as a
- detecting and responding to the risks of fraud
going concern, disclosing, as applicable, matters related
and whether they have knowledge of any
to going concern and using the going concern basis of
actual, suspected or alleged fraud; and
accounting unless the Accounting Officer anticipates
that the services provided by NHS Resolution will - the internal controls established to mitigate risks
not continue to be provided in the future. related to fraud or non-compliance with laws and
regulations including NHS Resolution's controls
Auditor's responsibilities for the relating compliance with the National Health
audit of the financial statements Service Act 2006, and Managing Public Money.
• discussing among the engagement team and
My responsibility is to audit, certify and report
involving relevant internal and external specialists,
on the financial statements in accordance with
including actuarial and IT expertise regarding
the National Health Service Act 2006.
how and where fraud might occur in the financial
My objectives are to obtain reasonable assurance about statements and any potential indicators of fraud.
whether the financial statements as a whole are free
As a result of these procedures, I considered the
from material misstatement, whether due to fraud or
opportunities and incentives that may exist within NHS
error, and to issue a certificate that includes my opinion.
Resolution for fraud and identified the greatest potential
Reasonable assurance is a high level of assurance
for fraud in the following areas: recognition of revenue,
but is not a guarantee that an audit conducted in
bias in management estimates and posting of unusual
accordance with ISAs (UK) will always detect a material
journals. In common with all audits under ISAs (UK),
misstatement when it exists. Misstatements can arise
I am also required to perform specific procedures to
from fraud or error and are considered material if,
respond to the risk of management override of controls.
individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of I also obtained an understanding of NHS Resolution's
users taken on the basis of these financial statements. framework of authority as well as other legal and
regulatory frameworks in which NHS Resolution operates,
Extent to which the audit was considered
focusing on those laws and regulations that had a
capable of detecting non-compliance with
direct effect on material amounts and disclosures in the
laws and regulations including fraud
financial statements or that had a fundamental effect
I design procedures in line with my responsibilities, on the operations of NHS Resolution. The key laws and
outlined above, to detect material misstatements in regulations I considered in this context included the
respect of non-compliance with laws and regulation, National Health Service Litigation Authority (Establishment
including fraud. The extent to which my procedures and Constitution) Order 1995, the National Health Service
are capable of detecting non-compliance with laws Litigation Authority Regulations 1995, the National
and regulations, including fraud is detailed below. Health Service Act 2006, and Managing Public Money.