Tesco 2005 Annual Report Download - page 35

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Independent auditors’ report
to the members of Tesco PLC
We have audited the financial statements which comprise the
Group profit and loss account, the balance sheets, the cash
flow statement, the statement of total recognised gains and
losses and the related notes which have been prepared under
the historical cost convention and the accounting policies set
out in the statement of accounting policies. We have also
audited the disclosures required by Part 3 of Schedule 7A
to the Companies Act 1985 contained in the Directors’
remuneration report (‘the auditable part’).
Respective responsibilities of directors and auditors
The Directors’ responsibilities for preparing the annual
report and the financial statements in accordance with
applicable United Kingdom law and accounting standards
are set out in the statement of Directors’ responsibilities.
The Directors are also responsible for preparing the Directors’
remuneration report.
Our responsibility is to audit the financial statements and
the auditable part of the Directors’ remuneration report in
accordance with relevant legal and regulatory requirements
and United Kingdom Auditing Standards issued by the
Auditing Practices Board. This report, including the opinion,
has been prepared for and only for the company’s members
as a body in accordance with Section 235 of the Companies
Act 1985 and for no other purpose. We do not, in giving this
opinion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or in to
whose hands it may come save where expressly agreed by
our prior consent in writing.
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 auditable part of the Directors’
remuneration report have been properly prepared in
accordance with the Companies Act 1985. We also report to
you if, in our opinion, the Directors’ report is not consistent
with the financial statements, if the company has not kept
proper accounting records, 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 transactions is not disclosed.
We read the other information contained in the annual
report and consider the implications for our report if we
become aware of any apparent misstatements or material
inconsistencies with the financial statements. The other
information comprises only the Directors’ report, the unaudited
part of the Directors’ remuneration report, the Chairmans
statement, the operating and financial review and the
corporate governance statement.
We review whether the corporate governance statement
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 to form an opinion on the effectiveness of the
company’s or Group’s corporate governance procedures or
its risk and control procedures.
Basis of audit opinion We conducted our audit in accordance
with auditing standards issued by the Auditing Practices
Board. An audit includes examination, on a test basis, of
evidence relevant to the amounts and disclosures in the
financial statements and the auditable part of the Directors’
remuneration report. 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 company’s
circumstances, 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
auditable part of the Directors’ remuneration report 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.
Opinion In our opinion:
the financial statements give a true and fair view of
the state of affairs of the company and the Group at
26 February 2005 and of the profit and cash flows of
the Group for the period then ended;
the financial statements have been properly prepared
in accordance with the Companies Act 1985; and
those parts of the Directors’ remuneration report required
by Part 3 of Schedule 7A to the Companies Act 1985
have been properly prepared in accordance with the
Companies Act 1985.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
London 11 April 2005
Tesco PLC 33