BT 1997 Annual Report Download - page 34

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34
Statement of directors,
responsibility
FOR PREPARING THE FINANCIAL STATEMENTS
The directors are required by law to prepare financial
statements for each financial year which give a true and
fair view of the state of affairs of the company and the
group as at the end of the financial year and of the profit
or loss, total recognised gains or losses and cash flows of
the group for that period.
The directors consider that, in preparing the financial
statements for the year ended 31 March 1997 on pages
36 to 62, the company has used appropriate accounting
policies, consistently applied and supported by reasonable
and prudent judgements and estimates. The directors also
consider that all accounting standards which they
consider to be applicable have been followed and confirm
that the financial statements have been prepared on the
going concern basis.
The directors are responsible for ensuring that the
company keeps accounting records which disclose
with reasonable accuracy the financial position of the
company and which enable them to ensure that the
financial statements comply with the Companies Act 1985.
The directors are also responsible for taking such
steps that are reasonably open to them to safeguard
the assets of the group and to prevent and detect fraud
and other irregularities.
The auditors’ responsibilities are stated in their report
to the shareholders.
Report of the auditors
TO THE SHAREHOLDERS OF BRITISH TELECOMMUNICATIONS plc
We have audited the financial statements on pages 36 to 62
including the information on directors’ remuneration and
directors’ interests on pages 29 to 33.
Respective responsibilities of directors
and auditors
As described in the statement of directors’ responsibility,
the company’s directors are responsible for the
preparation of financial statements. It is our responsibility
to form an independent opinion, based on our audit, on
those financial statements and to report our opinion
to you.
Basis of 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. 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
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
31 March 1997 and of the profit, total recognised gains
and cash flows of the group for the year then ended and
have been properly prepared in accordance with the
Companies Act 1985.
Coopers & Lybrand
Chartered Accountants and Registered Auditors
London
20 MAY 1997