Auditing services

Tender description

Southern Water Services (SWS) under the new European Union (EU) statutory audit legislation, related to the statutory audits of public interest entities (PIEs), is seeking to renew its statutory audit services by competitive tender for the Greensands Holdings group of companies which includes Southern Water Services Limited as its principal operating company. As part of this process, Southern Water Services is also seeking to renew the audit of its regulatory accounting statements as required by its Instrument of Appointment (Licence) under the Water Industry Act 1991 and as specified by the Water Services Regulation Authority (Ofwat). The service To conduct an audit service that reports to the members of the group, and each company within the group, whether the financial statements give a true and fair view, whether they have been properly prepared in accordance with the relevant financial reporting framework, and whether they have been prepared in accordance with the Companies Act 2006. To carry out such investigations to form an opinion as to: (a) whether adequate accounting records have been kept by the company and that returns adequate for the audit have been received; (b) whether the company's individual financial statements are in agreement with the accounting records and returns; (c) whether certain disclosures of directors' remuneration specified by law are not made; and (d) whether all the information and explanations which are necessary for the purpose of the audit. To conduct an audit of the regulatory financial information in order to assist Southern Water Services in meeting its obligation, under Condition F of its Licence, to procure such a report and to facilitate the carrying out, by Ofwat, of its regulatory functions. The audit will be conducted in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board and will include such tests of transactions and of the existence, ownership and valuation of assets and liabilities as necessary. The services shall include understanding of the accounting and the internal control systems in order to assess their adequacy as a basis for the preparation of the financial statements and to form an opinion whether adequate accounting records have been maintained by the company. Understanding of the internal controls systems will form the basis of the audit approach. It is envisaged that the audit procedures will be a mix of control and substantive testing. To conduct Agreed Upon Procedures assurance for certain elements of the regulatory information, not covered by the required Ofwat audit opinion, for example viability statement, Condition I and supplementary financial tables