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  "documentTitle": "Scottish Fiscal Commission Audit",
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      "text": "Deloitte view: We have found an immaterial error which can be seen at page 37. These related to payroll accruals being over accrued at year end, causing the accruals balance to be overstated. Based on our testing to date, we confirm that the SFC has performed within the limits set by Scottish Parliament achieving a small underspend of £105,000.",
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      "text": "Evaluating the design and implementation of controls around monthly monitoring of financial performance; Confirming the resource limits allocated to SFC by reference to the Budget (Scotland) Act 2022; Performing focused testing of accruals and prepayments made at the year-end; and Performing focused cut-off testing of invoices received and paid around the year-end.",
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      "text": "underspend: £105,000",
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      "text": "Under Auditing Standards there is a rebuttable presumption that the fraud risk from revenue recognition is a significant risk. In line with previous years, we do not consider this to be a significant risk for SFC as there is little incentive to manipulate revenue recognition with the majority of revenue being from the Scottish Government which can be agreed to confirmations supplied. We therefore considered the fraud risk to be focused on how management operate within the expenditure resource limits set by the Scottish Parliament. There is a risk is that the SFC could materially misstate expenditure in relation to year-end transactions, in an attempt to achieve a breakeven position on its budget. The significant risk is therefore pinpointed to the completeness of accruals and the existence of prepayments made by management at the year-end and invoices processed around the year-end as this is the area where there is scope to manipulate the final results. Given the financial pressures across the whole of the public sector, there is an inherent fraud risk associated with the recording of accruals and prepayments around year-end.",
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      "text": "We have evaluated the results of our audit testing in the context of the achievement of the limits set by the Scottish Government. Our work in this area included the following:",
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      "text": "2.3.3 Significant risks (continued)",
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