HSBC 2003 Annual Report Download - page 233

HSBC HOLDINGS PLC
Independent auditors’ report to the Members of HSBC Holdings plc
231
We have audited the Financial Statements on pages 233 to 366. We have also audited the information in the
Directors’ Remuneration Report that is described as having been audited.
This report is made solely to the members of HSBC Holdings plc (‘HSBC Holdings’ ), as a body, in accordance
with section 235 of the Companies Act 1985. Our audit work has been undertaken so that we might state to the
members of HSBC Holdings those matters we are required to state to them in an auditors’ report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than
HSBC Holdings and the members of HSBC Holdings as a body, for our audit work, for this report, or for the
opinions we have formed.
Respective responsibilities of Directors and Auditors
The directors are responsible for preparing the Annual Report and the Directors’ Remuneration report. As
described on page 230, this includes responsibility for preparing the Financial Statements in accordance with
applicable United Kingdom law and accounting standards. Our responsibilities, as independent auditors, are
established in the United Kingdom by statute, the Auditing Practices Board, the Listing Rules of the Financial
Services Authority, 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 whether the
Financial Statements and the part of the Directors’ Remuneration Report to be audited have been 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 has not kept proper accounting records, 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 transactions with HSBC Holdings together with its subsidiary undertakings (together
‘HSBC’ ) is not disclosed.
We review whether the statement on pages 204 to 205 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, including the Corporate Governance Statement
and the unaudited part of the Directors’ Remuneration Report, 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 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 and the part of the Directors’ Remuneration Report to be audited. 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
and the part of the Directors’ Remuneration Report to be audited 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 and the part of the Directors’ Remuneration Report to be
audited.