BP 2005 Annual Report Download - page 31

Independent auditors’ report
BP Annual Report and Accounts 2005 29
We have audited the consolidated financial statements of BP p.l.c. for the year ended 31 December 2005 which comprise the group income
statement, the group balance sheet, the group cash flow statement, the group statement of recognized income and expense, accounting policies
and the related notes 1 to 52. These consolidated financial statements have been prepared under the accounting policies set out therein.
We have reported separately on the parent company financial statements of BP p.l.c. for the year ended 31 December 2005 and on the information
in the Directors’ Remuneration Report that is described as having been audited.
This report is made solely to the company’s members, as a body, in accordance with Section 235 of the Companies Act 1985. Our audit work
has been undertaken so that we might state to the company’s 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 company
and the company’s members as a body, for our audit work, for this report or for the opinions we have formed.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS
The directors are responsible for preparing the Annual Report and the consolidated financial statements in accordance with applicable United
Kingdom law and International Financial Reporting Standards (IFRSs) as adopted by the European Union as set out in the statement of directors’
responsibilities in respect of the consolidated financial statements.
Our responsibility is to audit the consolidated financial statements in accordance with relevant legal and regulatory requirements and International
Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the consolidated financial statements give a true and fair view and whether the consolidated financial
statements have been properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS Regulation. We also report to you if,
in our opinion, the Directors’ Report is not consistent with the consolidated financial statements, if we have not received all the information and
explanations we require for our audit, or if information specified by law regarding directors’ remuneration and other transactions is not disclosed.
We review whether the Governance: board performance report reflects the company’s compliance with the nine provisions of the 2003 FRC
Combined Code specified for our review by the Listing Rules of the Financial Services Authority, and we report if it does not. We are not required
to consider whether the board’s statements on internal control cover all risks and controls, or form an opinion on the effectiveness of the group’s
corporate governance procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider whether it is consistent with the audited consolidated financial statements.
The other information comprises the United States accounting principles, the supplementary information on oil and natural gas quantities, the other
financial and operating data, the Directors’ Report, the Chairman’s letter, and Governance: board performance report. We consider the implications
for our report if we become aware of any apparent misstatements or material inconsistencies with the consolidated financial statements. Our
responsibilities do not extend to any other information.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit
includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the consolidated financial statements. It also includes
an assessment of the significant estimates and judgements made by the directors in the preparation of the consolidated financial statements and
of whether the accounting policies are appropriate to the group’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations that we considered necessary in order to provide us with
sufficient evidence to give reasonable assurance that the consolidated financial statements are free from material misstatement, whether caused
by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the
consolidated financial statements.
OPINION
In our opinion the consolidated financial statements:
••• give a true and fair view, in accordance with IFRSs as adopted by the European Union, of the state of the group’s affairs as at 31 December 2005
and of its profit for the year then ended; and
••• have been properly prepared in accordance with the Companies Act 1985 and Article 4 of the IAS Regulation.
SEPARATE OPINION IN RELATION TO IFRS
As explained in accounting policies to the consolidated financial statements, the group, in addition to complying with its legal obligation to comply
with IFRSs as adopted by the European Union, has also complied with the IFRSs as issued by the International Accounting Standards Board.
In our opinion the consolidated financial statements give a true and fair view, in accordance with IFRSs, of the state of the group’s affairs as at
31 December 2005 and of its profit for the year then ended.
Ernst & Young LLP
Registered auditor
London
6 February 2006