DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 Registered number: 09243292 Charity number: 1186255 INVISIBLE FLOCK CO (A Company Limited by Guarantee) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) CONTENTS Page Reference and Administrative Dgtsils of the Charity. its Trustges and Advisers Trustees. Report Independent Auditors. Report on the Financial Ststements 8-11 Statement of Flnanclal Actlvltles 12 Balance Sheet 13 Notes to the Financial Ststements 14-25 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021 Trustees J Audibert ARA Bertram B Elliot Dr CL Jewitt EM Rutherford C Schoeps Company registered number 09243292 Charity registered number 1186255 Registered office Unit8a Longside Jebb Lane Haigh Barnsley S75 4BS Independent auditors Cooper Parry Group Limited Chartered Accountants Slatulory Auditor One Central Boulevard Btythe Valley Business Park Solihull Wesl Midlands Bgo 8BG Page 1 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) TRUSTEES. REPORT FOR THE YEAR ENDED 31 MARCH 2021 The Trustees present their annual report together with the audited financial statements of the Charity for the year 1 April 2020 10 31 March 2021. The Annual Report serves the purposes of both a Trustees, report and a directors, report under company law. The Trustees confi'rm that the Annual Report and financial stslemenls of the charitable company comply with the current statutory requirements, the requirements of the charitsble company's governing document and the provisions of the Statement of Recommended Practice ISORPI applicable to charities preparing their accounts in accordance with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS1021 leffeclive 1 January 20191. sin￿ the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors, Report) Regulations 2013 has been omitted. Oblectlves and actlvltles Invisible Flock's charitsble objectives are., The promotion of the arts, in particular, but not exclusively, the art of drama. Our mission is lo redefine and disrupt traditional perceptions and models of global art practice. Drawing directly from the worfd around us we aim to create and foster relevant and contemporary practices that have a long lasting Iransformalive effect. Invisible Flock is driven by four core aims,. global connectivity, true innovation, collaborative processes and ecological action. Global Connectivity A connected world and celebration of diversity is a core mission of Invisible Flock. Our work addresses global themes, inspired by geographies, contexts, audiences and people, il is responsive and politically aware. Our aim is lo make artworks that allow people to be better connected and to participate in meaningful dialogues. We believe that our practice and our business is made stronger, more effective and agile through diverse, global networks and collaborations. We create artworks of global scale and access that help us have a better understsnding of each other, our lives and the challenges we all face in the world. True Innovation - We are committed to exploring how art and technology can create new and emerging practices that have a growing impact on society al large, across many sectors, communities and cultures. As technology is ever more present and en￿ined in day lo day life placing digitsl innovations at the centre of what we create gives us unique levels of proximity and intimacy with our aUdien￿S, allowing us Unpre￿dented reach and impact particularly in an environmentally changing wodd. Through our residencies and mentoring support programs we are commilled lo dismanding socio-economic barriers to innovation and the slruclural inequalities that perpeluale a pallem of contemporary storytelling techniques remaining in the hands of a select few. Collaborative processes - Working across disciplines and contexts we develop work with a rich variety of people as co-designers and participants in unique and meaningful ways. Placing collaborative processes at the heart of Invisible Flock's mission means we do not place boundaries around what we can create, who is involved and where il might exist. We are passionate about re-imagining art practices and working with others lo develop new hybrid forms of work. We strive lo break down the hierarchy of "expery, through the pooling of multiple experienceslskills our practice is stronger, more relevant lo our audiences and innovative in ils fomi. We believe in strong local collaborations. Where our work addresses certain themes, il cannot be made without the people living within that context, that il is not only the role of art to amplify knowledge but to truly make something together that has a positive impact both in their lives and locality. Page 2 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Ecological Action We are committed to activating art's role in the mitigation, creative response and global fight for climate justice and ecological repair. Our work explores the environmental crisis in all ils forms, from ecosystem decline, biodiversity loss, climate justice and psychoterralic grief. We are dedicated to exploring this most important issue of our lime and how art praCtI￿S can offer new perspectives, understandings and debate on these issues and engage with those often excluded from these conversations. We strongly believe that to tackle the climate crisis we must be working across all hazards and risks simultaneously, that to solve this we musl first tackle inequality. Our practice sits across multiple contexts and adjacent sectors, allowing us lo bring our creative thinking and unique way of employing technology to bear in conlexls as diverse as climate science, education, design, the development sector, urban planning and healthcare. We see our practice and our studio as a laboratory for how we think and live in a new ecological normal. A space both physical and conceptual for contemporary and future thinking about the world that surrounds us and how we live in it. We deliver a programme of ambitious, digital and public realm work that is relevant and critically engaged with contemporary society. We create a rolling talent development programme aimed at escalating the level of skill and experimentation with new digitsl art practices while exploring new forms of artistic excellence through cross cultural collaboration. The use of innovative technologies is the backbone of our projects, always pushing at the digital medium as a mechanism to engage and interact with audiences in new critical ways. Central to our practice is an exploration of the ecological crisis in all its forms, from ecosystem decline, biodiversity loss, climate justice and psychoterralic grief. We do this by working collaboratively, across multiple sectors. Achlevements and performance 2020121 was a challenging year, the pandemic had a subslanlial impact on the arts and culture sector. We had many large scale culminating projects planned with festivals, museums and galleries which were indefinitely postponed. Despite this Invisible Flock has been resilient and stsble, pivoting activity to focus on digital and online activity. We have continued to successfully maintain existing international collaborations and develop new ones remotely. In addition to engaging in the development and planning of new works. The result has been a very busy and productive year, with the launch of 7 new digitsl works, continued research and development of 9 other works while also hosting remote artist residencies and online workshops. Our strategic pwramme strands have enabled us lo prioritise resilience and ensure that the organisalion continues to be relevant and responsive. PUBLIC REALM Commissioned by Manchester Science Museum we continued development of Nada Bumi (Earth Tones) an interactive sensory exhibition that invites you to rethink your own relationship with some of the earth's most important ecosystems. The exhibition invites audiences to consider and critically engage with the human impact on landscapes in Indonesia and the Amazon. This work is a collaboration with Digital Nativ Ilndonesial and LABVERDE IBrazill. Unfortunately the exhibition did not take place as planned bul we hope to exhibit the work at the Wellcome Hub during 2021122. SOCIALL Y ENGAGED Duet 2. 0 - As part of our pivoted activity we collaborated with Quicksand to represent Duel for 100 days between June and September 2020. Duet is an app that pairs participating individuals and invites them to exchange details of their lives by answering a question a day. It was accessible lo participate in from anywhere across the wodd. This iteration of Duet sought lo provide an intimate and reflective Spa￿ through which we could all directly respond lo this new world we find ourselves in, especially in light of COVID 19. The project engaged almost 800 individuals globally Page 3 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Hold,. Beyond Measure - In September 2020 we presented a short film as part of an online exhibition that presented workshops we developed with the Dementia Peer Support group in Leeds prior to the pandemic. This was a commission from the Cultural Institute al the University of Leeds. INTERNA TIONALL Y FOCUSSED Out From the Flood - With funding from the Finnish Institute we continues our collaboration with Subzero in North Finland and developed a durational, immersive and multi-sensory online experience connecting audiences with data from Oulanka National Park,. https.'Ilinvisibleflock.comloutfromthefloodl This project was launched in July 2020. IARA is an online artwork made in collaboration with LABVERDE as part of the Programa Pontes Oi Fuluro, supported by the British Council. This new artwork lara looks to understand the life cycle and stories of the Macacarecuia tree (Eschweilera lenuifolial, a tree species of the igapo forests Iseasonally-flooded forests on the margins of blackwater rivers flooded forests) and one of the oldest trees in the Amazon, approximately 1200 years old. http.'Iliara.invisibleflock.coml GALA is an international working group of 7 organisations responding lo the themes of river and ocean health. We participate in bi-monthly meetings and presented a social media intervention together during October 2020. IDEA TION Creative Responses lo Sustainability.. UK Green Guide is a publication we researched, designed and developed with the Asia-Europe FoundationlASEFI. The publication collects commissioned creative responses, articles and a series of over 30 conversations with artists, collectives and organisations based in the UK whose core practice is grounded sustainable, ecological, environmentsl andlor climate based understandings. https'.Ilcullure360.asef.orglmagazinelgreen-guide-ukl Through this process we were able to support a significant number of artists. Solastalgia / Land Body Ecologies - Our application lo the Wellcome Trust Hub Award was announced as successful in May 2021 we begin the year project in October 2021. The process was delayed by a year which gave us additional time to develop the project and partners further. The two-year research project, led by Invisible Flock, brings together a team of human rights activists, mental health researchers, scientists, and artists lo research the phenomenon of solastslgia. A developing field in global health, solaslalgia is defined as the emotional or exislenlial distress caused by environmentsl change, or commonly described as 'the feeling of homesickness while you are still at home., Through the lens of solaslalgia, the project aims to understand the lived eXperIen￿S of land trauma on marginalised and indigenous communities. Forest is a durational artwork about how we can imagine and build a symbiotic future with the natural world. Leeds 2023 commissioned an R&D period in which we developed the project and presented online workshops that facilitated a conversation on how ecological thinking, conservation and nature recovery practices can affect and be driven by an art practice and whether new models of thinking about site, resources, mentsl health and space can emerge. The Cost of Innovation + ￿SidencIeS- Residencies are an important element lo our studio practice. The Cost of Innovation is a 3 year project during which we offer opportunities lo artists to join us in investigating models and tools for innovation in our sector. While physical residencies were not possible we created a longer temi opportunity for artists to work alongside us online in advan￿ of a physical residency in 2021. Leeds Creative Labs - We worked with a research team from Leeds University exploring how the arts and humanities can engage with debates about the future of money and finance, working across ethics, literature, theology, media studies, visual and performing arts, design, economic history, and numismatics. Page 4 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 OTHER Faint Signals is an online inleracb've artwork commissioned by the British Library. An invitstion to slow down, an opportunity to experience an imagined British woodland, densely populated with sounds of nature from the British Library's archive. Each tile scrolled past unlocks a narrative and rich vein of sounds from the forest, all of which are based on real life environments, with wildlife, weather and other nature sounds reflecting the diversity and complexity of ecosystems in the Yorkshire region. https.'Ilfaintsignals.iol Blood Land Embrace is an animation we are facilitating by Majid Adin and commissioned by Journeys Festival. In October 2020 we presented an online teaser ahead of the full work being presented as an outdoor projection work in Manchester and Leicester during October 2021. A Portrait in Ten Parts is a collaboration with Umar Butt, commissioned by the ARC, Stockton. Development was postponed until we were able lo engage directly with the community in April 2021. Press was achieved across a number of online and printed national and international avenues including., inews.co.uk- featuring Duet The New Scientist- featuring Duet FAD Magazine - featuring Out From The Flood Business Next IChinalTaiwanl - featuring Duet Ocula - featuring Out From The Flood iNewspaper- featuring Out From The Flood and Duet Yorkshire Post- featuring Faint Signals Craven Herald featuring Faint Signals BBC Radio Leeds featuring Faint Signals Europeana Pro - featuring Faint Signals BBC - featuring Faint Signals As trustees responsible for Invisible Flock Co. we have tsken into account the Charity Commission's public benefit guidance including the following,. Making decisions to ensure our purpose provides public benefit Making decisions to manage risks of delrimenl or hami to our charity's beneficiaries or lo the public in general that might result from carrying out the purpose Making decisions about who benefits in ways that are consistent with the purpose Making decisions lo make sure any personal benefits are no more than incidental Page 5 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 Flnanclal Revlew Arts Council England are Invisible Flock's principal funder and supported the oryanisalion with the following grants in 2020121., £198,558 - National Portfolio Organisalion £18.952 - Small Capitsl Grant Income was also achieved through the following stands., £5,254 - Ttusts and Foundation$ £5,500 - British Council £4,000 - Leeds City Council £60,924- Fees and Commissions Our lost revenue for 2020121 compared lo predictions is approximately £100,000. However we did not incur any irrecoverable expenditure after being careful not to undertake work or make purchases for projects where income was not secured. We undertook some projects where income did not cover full costs and required our own investment, but they ensured we were able to continue a steady oulpul, engage with audiences and limit the reduction in our programme. Reser•es pollcy It is the policy of the Iruslees to maintain free reserves up to a level that equates to 3 months operational expenditure plus redundancy costs for staff. Due to the large scale nature of our work we also need to consider substantial debtors costs within this figure. The calculated ambition for organisational reserves is therefore £201,856 12020.. £100,928). The level of free reserves at 31 March 2021 was £77,23212020.' £85,085). Golng concern After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue lo adopt the going concern basis in preparing the financial stslemenls. Further details regarding the adoption of the going cOn￿M basis can be found in the accounting policies. Structure, governance and management Memorandum and Articles The company is a Company Limited by Guarantee without a share capital. The Iruslees therefore do not have any interest in the share capital of the company. New trustees are advertised or applications invited, candidates are interviewed by Creative Director and Executs've Producer who recommend appointment to the board. Flnanclal rlsk management The Trustees have assessed the major risks to which the Company is exposed, in particular those related lo the operations and fInan￿S of the Company, and are satisfied that systems and procedures are in pla￿ to mitigate exposure to the major risks. Page 6 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) TRUSTEES. REPORT {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021 ststement of Trustees. responsbllltles The Trustees (who are also the directors of the Company for the purposes of company lawl are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the stale of affairs of the Company and of its incoming resources and application of resources, including ils income and expenditure, for that period. In preparing these financial stalemenls, the Trustees are required lo.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP IFRS 1021., make judgements and accounting estimates that are reasonable and prudent., slate whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial statements", prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Olsclosure of Infomiatlon to the audltors Each of the persons who are Trustees al the time when this Trustees, Report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order lo be aware of any relevant audit information and to establish that the charity's auditors are aware of that information. Approved by order of the members of the board of Trustees and signed on their behalf by.. DOGUS￿nedty. Trustee Dale.. 15 December 2021 Page 7 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF INVISIBLE FLOCK CO Opinion We have audited the financial statements of Ithe '¢harilable company'l for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balan￿ Sheet and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. Iuniled Kingdom Generally Accepted Accounting PracliTrl. In our opinion, except for the possible effects of the matter described in the 'Basis for qualified opinion. section of our report, the financial stalemenls.. give a true and fair view of the slate of the charitable company's affairs as al 31 March 2021 and of ils Incoming resources and application of reSoUr￿s, Induding its Income and expenditure for the year then ended., have been propedy prepared in accordance with United Kingdom Generally Accepted Accounting Practice," and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for qualified opinion An audit was not performed for the year ended 31 March 2020 as the Charity does not meet the minimum requirements lo warrant an audit. As a ￿SuIt the comparative figures are unaudited and as such we are unable lo determine whether adjustments lo the figures might be necessary. Our opinion on the current period's financial statements is modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures. We eonducled our audit in accordance with Intemalional Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical sponsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is suffi'cient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Trustees, use of the going eoncern b8s1s of aceounling in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any materi81 uncert8inlies relating to events or conditions that, individually or collectively, may cast significant doubt on the Charitable Company's ability to continue as a going concern for a period of al least twelve months from when the financial statements are authorised for issue. Oui responsibilities and the responsibilities of the directors with respect to going concem are described in the relevant sections of this report. Page 8 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF INVISIBLE FLOCK CO ICONTINUEDI Othgr information The other infomialion comprises the information included in the annual report other than the financial statements and our auditorfs report Ihereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly slated in our report, we do not express any form of assuran￿ conclusion Ihereon. Our responsibility is lo 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 course of the audit, or otherwise appears lo be materially misstsled. If we identify such material inconsistencies or apparent material misslatemenls, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other infomialion, we are required to report that fact. We have nothing to report in this regard. Opinion on other mattors prescribod by the Companigs Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Trustees, Report for the financial year for which the financial slalemenls are prepared Is consistent with the financial statements. the Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which are required to report by exception In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstalemenls in the Trustees. Report. We have nothing lo report in respect of the following matters in relation to which Companies Act 2006 requires us lo report to you if, in our opinion.. adequate accounting records have not been kept, or retums adequate for our audit have not been received from branches not visited by us,. or the financial slalements are not in agreement with the accounting records and returns,. or ertain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for OLJr audit", or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies. exemptions in preparing the Trustees, Report and from the requirement to prepare a Strategic Report. Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the Trustees determine is necessary to enable the p￿paratiOn of financial statements that are free from material misstatement, whether due lo fraud or error. In preparing the financial ststemenls, the Trustees are responsible for assessing the charitable company's ability lo continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concern basis of accounb'ng unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but lo do so. Page 9 DoGuSign Envelope ID." 68039239-FE624E39-881E47CA6DB43587 INVISIBLE FLOCK CO IA Company Limited by Guarantee) INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF INVISIBLE FLOCK CO ICONTINUEDI Auditors. responsibilitigs for tho audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, whether due to fraud or error, and lo Issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assurance, bul Is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misslatemenl 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 lo influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are Instsn￿s of non-compliance with laws and regulations. We design procedures in line with our responsibilities, ouuined above, lo delect material misstalemenls In respect of irregularities, including fraud. The extent to which our prO￿dureS are capable of delecling irregularities, including fraud is detailed below. Our assessment focused on key laws and regulations the Charitable Company's has to comply with and areas of the financial statements we assessed as being more susTrptible to misstalemenl. These key laws and regulations included bul were not limited lo Complian￿ with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant lax legislation. We are not responsible for preventing irregularities. Our approach to delecling irregularities included, but was not limited lo, the following.. obtaining an understanding of the Charitable Company's policies and procedu￿$ and how the Charitsble Company has complied with these, through discussions with the executive producer and walkthrough testing of controls., obtaining an understanding of the Charitable Company's risk assessment pro￿sS, including the risk of fraud., designing our audit procedures lo respond lo our risk assessment., and performing audit testing over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the nomial course of business and ￿VIewIng aecounting estimates for bias. In response lo the risk of irregularities in relation to non-compliance with laws and regulations, we designed procedures which included, but were not limited to.. agreeing financial ststement disclosures to underfying supporting documentation., reading the minutes of meetings of those charged with governance., enquiring of management as lo actual and potential litigation and claims and reviewing legal and professional expenses,. and reviewing correspondence with HMRC and associated parties., Whilst considering how our audit work addressed the detection of irregularities, we also consider the likelihood of detection based on our approach. Irregularities arising from fraud are inherently more difticult lo detect than those arising from error. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstalemenl in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial slatemenls, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional Con￿alMent, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-complian￿ and cannot be expected lo detect non