Tesco 2006 Annual Report Download - page 43

41Tesco plc
Independent auditors’ report to the members of Tesco PLC
Wehave audited the Group financial statements of Tesco PLC
for the year ended 25 February 2006 which comprise the Group
Income Statement, the Group Balance Sheet, the Group Cash
Flow Statement, the Group Statement of Recognised Income
and Expense and the related notes. These Group financial
statements have been prepared under the accounting policies
set out therein.
We have reported separately on the parent company financial
statements of Tesco PLC for the year ended 25 February 2006
and on the information in the Directors’ remuneration report
that is described as having been audited.
Respective responsibilities of directors and auditors
The Directors’ responsibilities for preparing the Annual Report
and the Group financial statements in accordance with
applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union are set out in the
Statement of Directors’ responsibilities.
Our responsibility is to audit the Group financial statements
in accordance with relevant legal and regulatory requirements
and International Standards on Auditing (UK and Ireland). 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 into 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 Group financial
statements give a true and fair view and whether the Group
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 Group 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 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 form an opinion on the effectiveness of the
Group’s corporate governance procedures or its risk and
control procedures.
Weread other information contained in the annual report
and consider whether it is consistent with the audited Group
financial statements. The other information comprises only
the Operating and financial review, the Directors’ report,
the Corporate governance statement and the unaudited
information in the Directors’ remuneration report. We consider
the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the
Group financial statements. Our responsibilities do not extend
toany 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
Group financial statements. It also includes an assessment of
the significant estimates and judgments made by the Directors
in the preparation of the Group 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 which we considered necessary
in order to provide us with sufficient evidence to give
reasonable assurance that the Group 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 Group financial statements.
Opinion
In our opinion:
• the Group 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 25 February 2006
and of its profit and cash flows for the year then ended;
and
• the Group financial statements have been properly
prepared in accordance with the Companies Act 1985
and Article 4 of the IAS Regulation.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
London 24 April 2006