Holiday Inn 2015 Annual Report Download - page 87

Scope of the audit of the Financial Statements
An audit involves obtaining evidence about the amounts and
disclosures in the Financial Statements sufficient to give reasonable
assurance that the Financial Statements are free from material
misstatement, whether caused by fraud or error. This includes an
assessment of: whether the accounting policies are appropriate to
the Group’s and the Parent Company’s circumstances and have been
consistently applied and adequately disclosed; the reasonableness
of significant accounting estimates made by the Directors; and the
overall presentation of the Financial Statements. In addition, we read
all the financial and non-financial information in the Annual Report to
identify material inconsistencies with the audited Financial Statements
and to identify any information that is apparently materially incorrect
based on, or materially inconsistent with, the knowledge acquired by
us in the course of performing the audit. If we become aware of any
apparent material misstatements or inconsistencies we consider
the implications for our report.
Respective responsibilities of Directors and Auditor
As explained more fully in the Directors’ Responsibilities Statement
set out on page 80, the Directors are responsible for the preparation
of the Financial Statements and for being satisfied that they give a true
Matters on which we are required to report by exception
ISAs
(UK and Ireland)
reporting
We are required to report to you if, in our opinion, financial and non-financial information in the Annual Report is:
• materially inconsistent with the information in the audited Financial Statements; or
• apparently materially incorrect based on, or materially inconsistent with, our knowledge
of the Group acquired in the course of performing our audit; or
• otherwise misleading.
In particular, we are required to report whether we have identified any inconsistencies between our knowledge
acquired in the course of performing the audit and the Directors’ statement that they consider the Annual Report
and accounts taken as a whole is fair, balanced and understandable and provides the information necessary for
shareholders to assess the entity’s performance, business model and strategy; and whether the Annual Report
appropriately addresses those matters that we communicated to the Audit Committee that we consider should
have been disclosed.
We have no
exceptions
to report.
Companies Act
2006 reporting
We are required to report to you if, in our opinion:
• adequate accounting records have not been kept by the Parent Company, or returns adequate for our
audit have not been received from branches not visited by us; or
• the Parent Company Financial Statements and the part of the Directors’ Remuneration Report to be audited
are not in agreement with the accounting records and returns; or
• certain disclosures of Directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
We have no
exceptions
to report.
Listing Rules
review
requirements
We are required to review:
• the Directors’ statement in relation to going concern, set out on page 155, and longer-term viability, set out
on page 27; and
• the part of the Corporate Governance Statement relating to the Company’s compliance with the provisions
of the UK Corporate Governance Code specified for our review.
We have no
exceptions
to report.
Statement on the Directors’ Assessment of the Principal Risks that Would Threaten the Solvency or Liquidity of the Entity
ISAs
(UK and Ireland)
reporting
We are required to give a statement as to whether we have anything material to add or to draw attention
to in relation to:
• the Directors’ confirmation in the Annual Report that they have carried out a robust assessment of the
principal risks facing the entity, including those that would threaten its business model, future performance,
solvency or liquidity;
• the disclosures in the Annual Report that describe those risks and explain how they are being managed
or mitigated;
• the Directors’ statement in the Financial Statements about whether they considered it appropriate to adopt
the going concern basis of accounting in preparing them, and their identification of any material uncertainties
to the entity’s ability to continue to do so over a period of at least 12 months from the date
of approval of the Financial Statements; and
• the Directors’ explanation in the Annual Report as to how they have assessed the prospects of the entity,
over what period they have done so and why they consider that period to be appropriate, and their statement
as to whether they have a reasonable expectation that the entity will be able to continue in operation and meet
its liabilities as they fall due over the period of their assessment, including any related disclosures drawing
attention to any necessary qualifications or assumptions.
We have
nothing
material
to add or
to draw
attention to.
Alison Duncan (Senior Statutory Auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor, London
22 February 2016
and fair view. Our responsibility is to audit and express an opinion
on the Financial Statements in accordance with applicable law and
International Standards on Auditing (UK and Ireland). Those standards
require us to comply with the Auditing Practices Board’s Ethical
Standards for Auditors.
This report is made solely to the Company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
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 auditor’s 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.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion:
• the part of the Directors’ Remuneration Report to be audited has
been properly prepared in accordance with the Companies Act
2006; and
• the information given in the Strategic Report and the Directors’
Report for the financial year for which the Financial Statements
are prepared is consistent with the Financial Statements.
STRATEGIC REPORT GOVERNANCE GROUP FINANCIAL STATEMENTS ADDITIONAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
85IHG Annual Report and Form 20-F 2015