RBS 2008 Annual Report Download - page 173

Independent auditors’ report to the members of The Royal Bank of Scotland Group plc
RBS Group Annual Report and Accounts 2008172
We have audited the financial statements of The Royal Bank of Scotland
Group plc (“the company”) and its subsidiaries (together “the Group”)
for the year ended 31 December 2008 which comprise the accounting
policies, the balance sheets as at 31 December 2008 and 2007, the
consolidated income statements, the cash flow statements, the
statements of recognised income and expense for each of the three
years in the period ended 31 December 2008, the related Notes 1 to 42
and the information identified as ‘audited’ in the Risk, capital and
liquidity management section of the Business review. These financial
statements have been prepared under the accounting policies set out
therein. We have also audited the information in the part of 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’ responsibilities for preparing the annual report, the
directors’ remuneration report and the financial statements in
accordance with applicable law and International Financial Reporting
Standards (IFRS), as adopted by the European Union, are set out in the
statement of directors’ responsibilities.
Our responsibility is to audit the financial statements and the part of the
directors’ remuneration report described as having been audited 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 financial statements give
a true and fair view and whether the financial statements and the part of
the directors’ remuneration report described as having been audited
have been properly prepared in accordance with the Companies Act
1985, and as regards the Group’s consolidated financial statements,
Article 4 of the IAS Regulation. We also report to you whether in our
opinion, the information given in the directors’ report is consistent with
the financial statements. The information given in the directors’ report
includes that specific information presented in the Business review that
is cross referred from the business review section of the directors’ report.
In addition we report to you if, in our opinion, the company has not kept
proper accounting records, 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 corporate governance statement reflects the
company’s compliance with the nine provisions of the 2006 Combined
Code specified for our review by the Listing Rules of the Financial
Services Authority, and we report if it does not.
The Listing Rules do not require us to consider whether the Board or
management’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 the other information contained in the Annual Report and
Accounts 2008 as described in the contents section, including the
unaudited part of the directors’ remuneration report, and consider
whether it is consistent with the audited financial statements. We
consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the financial
statements. Our responsibilities do not extend to any further information
outside the Annual Report and Accounts 2008.
Basis of audit opinion
We conducted our audit in accordance with International Standards on
Auditing (UK and Ireland) issued by the Auditing Practices Board and
with the standards of the Public Company Accounting Oversight Board
(United States). An audit includes examination, on a test basis, of
evidence relevant to the amounts and disclosures in the financial
statements and the part of the directors’ remuneration report described
as having been audited. It also includes an assessment of the
significant estimates and judgements made by the directors in the
preparation of the financial statements, and of whether the accounting
policies are appropriate to the circumstances of the company and the
Group, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information
and explanations which we considered necessary in order to provide us
with sufficient evidence to give reasonable assurance that the financial
statements and the part of the directors’ remuneration report described
as having been audited 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 financial statements and the part of the directors’ remuneration
report described as having been audited.