INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF VIGADO CAPITAL PLC (continued)
15
Respective responsibilities
Responsibilities of directors for the financial statements
As explained more fully in the Directors’ Responsibilities Statement set out on page 10, the directors are
responsible for the preparation of the financial statements in accordance with the applicable financial reporting
framework that give a true and fair view, and for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless management either intends to liquidate the Company or to cease operations,
or has no realistic alternative but to do so.
Auditor’s responsibilities for the 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 auditor's 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 ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
Explanation to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect irregularities, including fraud, that could reasonably be
expected to have a material effect on the financial statements. The risk of not detecting a material misstatement
due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate
concealment by, for example, forgery or intentional misrepresentations, or through collusion. In addition, the
further removed any non-compliance is from the events and transactions reflected in the financial statements,
the less likely it is that our procedure will identify such non-compliance. The extent to which our procedures are
capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the
prevention and detection of fraud rests with both those charged with governance of the company and
management.
Our approach was as follows:
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company
and determined that the most significant are those that relate to compliance with IFRS as adopted by the
European Union as applied in accordance with the provisions of the Companies Act 2014.
• We gained an understanding on how the Company is complying with those frameworks by performing a
review of the oversight of those charged with governance by making inquiries of those charged with
governance, the management and those responsible for legal and compliance matters. In assessing the
effectiveness of the control environment, we reviewed the compliance manual and code of ethics, inquired
about the compliance with the manual and code of ethics, reviewed the board minutes and gained an
understanding of the Company’s approach to compliance and governance.
• We assessed the susceptibility of the Company’s financial statements to material misstatement, including
how fraud might occur through enquiries of those charged with governance. Our procedures involved
gaining an understanding of processes and controls on the financial statements. We also performed a review
of the appropriateness of journal entries and other adjustments made in the preparation of the financial
statements, assessing accounting estimates for evidence of management bias and evaluating the business
rationale for related party transactions and any significant unusual transactions. The key audit matter
section of our report sets out our response to the key audit matter relating to the valuation of financial