Capital One 2003 Annual Report Download - page 120

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REPORT OF INDEPENDENT AUDITORS
The Board of Directors and Stockholders
Capital One Financial Corporation
We have audited the accompanying consolidated balance sheets of Capital One Financial Corporation as of
December 31, 2003 and 2002, and the related consolidated statements of income, changes in stockholders’
equity, and cash flows for each of the three years in the period ended December 31, 2003. 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 in accordance with auditing standards generally accepted in the 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 includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Capital One Financial Corporation at December 31, 2003 and 2002, and the consolidated
results of its operations and its cash flows for each of the three years in the period ended December 31, 2003, in
conformity with accounting principles generally accepted in the United States.
As discussed in Note A to the financial statements, in 2003 the Company changed its method of accounting for
variable interest entities and accounting for stock based compensation.
/s/ E
RNST
&Y
OUNG
LLP
McLean, Virginia
January 21, 2004
102