HSBC 2001 Annual Report Download - page 161

HSBC HOLDINGS PLC
Independent Auditors’ Report to the Members of HSBC Holdings plc
159
We have audited the financial statements on pages 160 to 268.
Respective responsibilities of Directors and Auditors
The Directors are responsible for preparing the Annual Report and Annual Report on Form 20F. As described on
page 158 this includes responsibility for preparing the financial statements in accordance with applicable United
Kingdom law and accounting standards; the Directors have also presented additional information under US
requirements. Our responsibilities, as independent auditors, are established by statute in the United Kingdom,
Auditing Standards generally accepted in the United Kingdom and the United States, the Listing Rules of the UK
Financial Services Authority, the United States Securities and Exchange Commission and by our profession's ethical
guidance.
We report to you our opinion as to whether the financial statements give a true and fair view and are 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 HSBC Holdings plc (‘HSBC Holdings’ ) has not kept proper
accounting records, if we have not received all the information and explanations we require for our audit, or if the
information specified by law or the Listing Rules regarding Directors’ remuneration and transactions with HSBC
Holdings together with its subsidiary undertakings (‘HSBC’ ) is not disclosed.
We review whether the statement on pages 139 to 141 reflects HSBC Holdings’ compliance with the seven
provisions of the Combined Code specified for our review by the Listing Rules, 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 HSBC’ s corporate governance procedures or its risk and control procedures.
We read the other information contained in the Annual Report and Accounts, including the corporate
governance statement, 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.
Basis of audit opinion
We conducted our audit in accordance with auditing standards generally accepted in the United Kingdom and the
United States. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in
the financial statements. 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
HSBC’ 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
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. We believe that
our audit process provides a reasonable basis for our opinion.
United Kingdom opinion
In our opinion the financial statements give a true and fair view of the state of affairs of HSBC Holdings and HSBC
as at 31 December 2001 and of the profit of HSBC for the year then ended and have been properly prepared in
accordance with the Companies Act 1985.
United States opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of HSBC and HSBC Holdings as at 31 December 2001 and 2000, and the results of HSBC’ s
operations and cash flows for each of the years in the three-year period ended 31 December 2001, in conformity with
generally accepted accounting principles in the United Kingdom.
Generally accepted accounting principles in the United Kingdom vary in certain significant respects from
generally accepted accounting principles in the United States. Application of generally accepted accounting
principles in the United States would have affected HSBC’ s results of operations for each of the years in the three-
year period ended 31 December 2001 and shareholders’ equity as of 31 December 2001 and 2000 to the extent
summarised in Note 50 of ‘Notes on the Financial Statements’ .
KPMG Audit Plc 4 March 2002
Registered Auditor
Chartered Accountants, London