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How we tailored the audit scope Conclusions relating to going concern
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial Our evaluation of the directors’ assessment of the company’s ability to continue to adopt the going concern basis of accounting
statements as a whole, taking into account the structure of the company, the accounting processes and controls, and the included:
industry in which it operates.
• We reviewed and challenged the key assumptions used by the directors in their determination of the going concern of the
All of the Company's activities are administered in the United Kingdom. The principal activity of the Company is the provision Company.
of SME lending finance and saving products to customers. The Company's portfolio is predominately real estate finance • We reviewed management’s stress test scenarios and considered whether the Company would continue to operate above
secured on UK residential and commercial properties and the provision of asset finance loans to SME's. Based on the required regulatory capital and liquidity minima during times of stress.
Company's materiality we performed audit procedures over all material account balances and financial information. Our audit • We considered as to whether our audit work had identified events or conditions which may give rise to uncertainty of the
procedures provided us with sufficient audit evidence as a basis for our audit opinion on the financial statements as a whole. Company’s future ability to trade; and
• We reviewed legal and regulatory correspondence to ensure that any compliance issues which may impact the going
The impact of climate risk on our audit
concern of the Company had not been identified.
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 Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
relation to climate change in the Annual report and financial statements. In addition to enquiries with management, we also: individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of
at least twelve months from when the financial statements are authorised for issue.
• Read the materials considered by the ESG Steering Committee during the year to consider the impact on our audit
risk assessment; In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in
• Considered the exposure of the Company's secured property portfolio to physical and transition risks by examining the preparation of the financial statements is appropriate.
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 However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's
financial statements and our knowledge obtained from our audit. ability to continue as a going concern.

Our procedures did not identify any material impact in the context of our audit of the financial statements as a whole, or our Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections
key audit matters for the year ended 31 December 2022. of this report.
Materiality Reporting on other information
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’
These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover
extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated
misstatements, both individually and in aggregate on the financial statements as a whole. in this report, any form of assurance thereon.

Based on our professional judgement, we determined materiality for the financial statements as a whole as follows: In connection with our audit of the financial statements, our responsibility is to 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
Overall company £1,400,000. the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material
materiality misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial
How we determined it 5% of profit before tax from continuing operations statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that
Rationale for Profit before tax is one of the principal considerations when assessing the Company's there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based
benchmark applied performance, and is a generally accepted auditing benchmark. on these responsibilities.

With respect to the Strategic report and Directors' Report, we also considered whether the disclosures required by the UK
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and Companies Act 2006 have been included.
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 Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions
in determining sample sizes. Our performance materiality was 50% of overall materiality, amounting to £700,000 for the and matters as described below.
company financial statements.
Strategic report and Directors' Report
In determining the performance materiality, we considered a number of factors - the history of misstatements, risk assessment In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and
and aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range Directors' Report for the year ended 31 December 2022 is consistent with the financial statements and has been prepared in
was appropriate.
accordance with applicable legal requirements.
We agreed with the audit committee of Cambridge & Counties Bank Limited that we would report to them misstatements In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did
identified during our audit above £70,000 as well as misstatements below that amount that, in our view, warranted reporting not identify any material misstatements in the Strategic report and Directors' Report.
for qualitative reasons.

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