b'74 Mercia Asset Management PLC Annual Report & Accounts 2022Independent auditors report continuedto the members of Mercia Asset Management PLCOur tests included, but were not limited to:obtaining an understanding of the control environment in monitoring compliance with laws and regulations;agreement of the financial statement disclosures to underlying supporting documentation;enquiries of management and those charged with governance; andreview of minutes of board meetings throughout the year.We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our audit work focused on revenue recognition, the valuation of unquoted investments and the valuation of goodwill and intangible assets, where the risk of material misstatement due to fraud is the greatest (refer to the Key Audit Matter section). We also:Obtained independent evidence to support the ownership of investments;Recalculated fund management fees in total; andObtained independent confirmation of bank balances.In addressing the risk of management override of internal controls we tested journals and evaluated whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.A further description of our responsibilities is available on the Financial Reporting Councils website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors report.Use of our reportThis report is made solely to the Parent Companys members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Parent Companys members those matters we are required to state to them in an auditors 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 Parent Company and the Parent Companys members as a body, for our audit work, for this report, or for the opinions we have formed.Vanessa-Jayne Bradley (Senior Statutory Auditor)For and on behalf of BDO LLP, Statutory AuditorLondon, UK4 July 2022BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).'