Page 74 - 86395_CCB - 2024 Annual Report (web)

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The impact of climate risk on our audit
As part of our audit we made enquiries of management to understand the process management
adopted to assess the extent of the potential impact of climate risk on the Company's financial
statements and support the disclosures made in relation to climate change in the Annual report and
financial statements. In addition to enquiries with management, we also:

● Read the materials considered by the ESG Steering Committee during the year to consider the
impact on our audit risk assessment;
● Considered the exposure of the Company's secured property portfolio to physical and transition
risks by examining the output of assessments performed by management during the year; and
● Considered the consistency of the disclosures in relation to climate change within the Annual
Report with the financial statements and our knowledge obtained from our audit.

Our procedures did not identify any material impact in the context of our audit of the financial
statements as a whole, or our key audit matters for the year ended 31 December 2024.

Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative
thresholds for materiality. These, together with qualitative considerations, helped us to determine the
scope of our audit and the nature, timing and extent of our audit procedures on the individual financial
statement line items and disclosures and in evaluating the effect of misstatements, both individually and
in aggregate on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements as a whole
as follows:

Overall Company £1,790,000 (2023: £2,000,000).
materiality
How we determined it 5% of profit before tax
Rationale for benchmark Profit before tax is one of the principal considerations when assessing the
applied Company's performance, and is a generally accepted auditing benchmark.

We use performance materiality to reduce to an appropriately low level the probability that the aggregate
of uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use
performance materiality in determining the scope of our audit and the nature and extent of our testing
of account balances, classes of transactions and disclosures, for example in determining sample sizes. Our
performance materiality was 75% (2023: 75%) of overall materiality, amounting to £1,343,000 (2023:
£1,500,000) for the Company financial statements.

In determining the performance materiality, we considered a number of factors - the history of
misstatements, risk assessment and aggregation risk and the effectiveness of controls - and concluded
that an amount in the middle of our normal range was appropriate.

We agreed with the audit committee of Cambridge & Counties Bank Limited that we would report to them
misstatements identified during our audit above £90,000 (2023: £100,000) as well as misstatements
below that amount that, in our view, warranted reporting for qualitative reasons.

Conclusions relating to going concern

Our evaluation of the directors’ assessment of the Company’s ability to continue to adopt the going
concern basis of accounting included:

● We reviewed and challenged the key assumptions used by the directors in their determination of the
going concern of the Company.