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APPENDIX E
REPORT OF THE INDEPENDENT AUDI TORS , KPMG AUDI T LLC,
TO THE I SLE OF MAN F INANCIAL SERVICES AUTHOR I TY
We have audited the Accounts of the Isle of Man Financial Services Authority for the year
ended 31 March 2017 which comprise the Income and Expenditure Account and the related
notes. The financial reporting framework that has been applied in their preparation is the Audit
Act 2006 and UK Accounting Standards including FRS 102 the Financial Reporting Standard
applicable in the UK and Republic of Ireland, as applicable to the Authority.
This report is made solely to the Authority, as a body, in accordance with Section 4 of the Audit
Act 2006. Our audit work has been undertaken so that we might state to the Authority those
matters we are required to state to them in an auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
the Authority for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of Authority and Auditor
As explained more fully in the Chief Executive’s Responsibilities Statement set out on page 55,
the Authority is responsible for the preparation of financial statements that give a true and
fair view. Our responsibility is to audit, and express an opinion on, the financial statements in
accordance with the Accounts and Audit Regulations 2013 made under the Audit Act 2006, and
International Standards on Auditing (UK and Ireland). Those standards require us to comply
with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.
We review whether the Statement of Internal Control prepared by the Authority reflects
compliance with the Accounts and Audit Regulations 2013 made under the Audit Act 2006.
We report if the statement is misleading or inconsistent with other information we are aware
of from our audit of the accounts. We are not required to consider, nor have we considered,
whether the Statement on Internal Control covers all risks and controls.
Scope of the audit of the accounts
An audit involves obtaining evidence about the amounts and disclosures in the financial
statements sufficient to give reasonable assurance that the financial statements are free
from material misstatement, whether caused by fraud or error. This includes an assessment
of: whether the accounting policies are appropriate to the Authority’s circumstances and
have been consistently applied and adequately disclosed; the reasonableness of significant
accounting estimates made by the Authority; and the overall presentation of the financial
statements.
In addition, we read all the financial and non-financial information in the report to identify
material inconsistencies with the audited financial statements and to identify any information
that is apparently materially incorrect based on, or materially inconsistent with, the knowledge
acquired by us in the course of performing the audit. If we become aware of any apparent
material misstatements or inconsistencies we consider the implications for our report.
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