Barclays 2006 Annual Report Download - page 154

Report of Independent Registered Public Accounting
Firm to the Board of Directors and Shareholders of
Barclays PLC
We have completed an integrated audit of Barclays PLC (the ‘Company’)
and its subsidiary undertakings 31st December 2006 consolidated
financial statements on pages 151 to 274 and of its internal control over
financial reporting as of 31st December 2006 and an audit of its 2005
and 2004 consolidated financial statements in accordance with the
standards of the Public Company Accounting Oversight Board (United
States). Our opinions, based on our audits, are presented below.
Consolidated financial statements
In our opinion, the accompanying Consolidated Income Statements,
Consolidated Balance Sheets, Consolidated Cash Flow Statements and
the Consolidated Statements of Recognised Income and Expense
present fairly, in all material respects, the financial position of Barclays
PLC and its subsidiary undertakings at 31st December 2006 and 2005
and the results of their operations and cash flows for each of the three
years in the period ended 31st December 2006, in conformity with
International Financial Reporting Standards (IFRSs) as adopted by the
European Union. These financial statements are the responsibility of the
Company’s management. Our responsibility is to express an opinion
on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards
of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
of material misstatement. An audit of financial statements includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statements presentation. We believe
that our audits provide a reasonable basis for our opinion.
IFRSs as adopted by the European Union vary in certain significant
respects from accounting principles generally accepted in the
United States of America. Information relating to the nature and
effect of such differences is presented in Note 60 to the consolidated
financial statements.
Internal control over financial reporting
Also, in our opinion, management’s assessment, included in the
accompanying ‘Management’s report on internal control over financial
reporting’ as set out in the Accountability and audit section on page
141, that the Company maintained effective internal control over
financial reporting as of 31st December 2006 based on criteria
established in Internal Control – Integrated Framework issued by the
Committee of Sponsoring Organisations of the Treadway Commission
(COSO), is fairly stated, in all material respects, based on those criteria.
Furthermore, in our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of
31st December 2006, based on criteria established in Internal Control
– Integrated Framework issued by the COSO. The Company’s
management is responsible for maintaining effective internal control
over financial reporting and for its assessment of the effectiveness of
internal control over financial reporting. Our responsibility is to express
opinions on management’s assessment and on the effectiveness of the
Company’s internal control over financial reporting based on our audit.
We conducted our audit of internal control over financial reporting in
accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether
effective internal control over financial reporting was maintained in all
material respects. An audit of internal control over financial reporting
includes obtaining an understanding of internal control over financial
reporting, evaluating management’s assessment, testing and
evaluating the design and operating effectiveness of internal control,
and performing such other procedures as we consider necessary in
the circumstances. We believe that our audit provides a reasonable
basis for our opinions.
A company’s internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
standards and principles. A company’s internal control over financial
reporting includes those policies and procedures that (i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance
with generally accepted accounting standards and principles, and that
receipts and expenditures of the company are being made only in
accordance with authorisations of management and directors of the
company; and (iii) provide reasonable assurance regarding prevention
or timely detection of unauthorised acquisition, use, or disposition of
the company’s assets that could have a material effect on the financial
statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
London, United Kingdom
8th March 2007
Independent Registered Public Accounting Firm’s report
Barclays PLC
Annual Report 2006
150