Holiday Inn 2003 Annual Report Download - page 62

60 InterContinental Hotels Group 2003
DIRECTORS’ RESPONSIBILITIES IN RELATION TO FINANCIAL STATEMENTS
REPORT OF THE INDEPENDENT AUDITORS
The following statement, which should be read in conjunction with the
report of the independent auditors set out below, is made with a view to
distinguishing for shareholders the respective responsibilities of the
directors and of the auditors in relation to the financial statements.
The directors are required by the Companies Act 1985 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 for the financial year.
Following discussions with the auditors, the directors consider that in
preparing the financial statements on pages 28 to 55 inclusive, the
Company has used appropriate accounting policies, applied in a
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS
OF INTERCONTINENTAL HOTELS GROUP PLC
We have audited the Group’s financial statements for the period ended
31 December 2003 which comprise the Group profit and loss account,
Group statement of total recognised gains and losses, Reconciliation of
movement in shareholders’ funds, Group cash flow statement, Group
balance sheet, Company balance sheet, and the related notes 1 to 37.
These financial statements have been prepared on the basis of the
accounting policies set out therein. 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 Company’s members, 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 Company’s
members 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 the
Company and the Company’s members 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, including
the financial statements which are required to be prepared in
accordance with applicable United Kingdom law and accounting
standards as set out in the Statement of Directors’ Responsibilities in
relation to the financial statements.
Our responsibility is to audit the financial statements and the part of the
Directors’ Remuneration Report to be audited in accordance with
relevant legal and regulatory requirements, United Kingdom Auditing
Standards and the Listing Rules of the Financial Services Authority.
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 the Company 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 or the Listing
Rules regarding directors’ remuneration and transactions with the Group
is not disclosed.
We review whether the Corporate Governance Statement reflects the
Company’s compliance with the seven provisions of the Combined
consistent manner and supported by reasonable and prudent
judgements and estimates, and that all applicable accounting standards
have been followed.
The directors have responsibility 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 have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of the Company and
to prevent and detect fraud and other irregularities.
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 the Group’s corporate governance
procedures or its risk and control procedures.
We read other information contained in the Annual Report and consider
whether it is consistent with the audited financial statements. This other
information comprises the Directors’ Report, unaudited part of the
Directors’ Remuneration Report, Chairman’s Statement, Operating
and Financial Review, Corporate Governance Statement and Three Year
Review. We consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies with
the financial statements. Our responsibilities do not extend to any
other information.
BASIS OF AUDIT OPINION
We conducted our audit in accordance with United Kingdom 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 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 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.
OPINION
In our opinion, the financial statements give a true and fair view of the
state of affairs of the Company and of the Group as at 31 December
2003 and of the profit of the Group for the period then ended; and 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.
Ernst & Young LLP,
Registered Auditor, London.
10 March 2004