National Grid 2014 Annual Report Download - page 83

Strategic Report Corporate Governance Financial Statements Additional Information
Audit opinion for Form 20-F
In our opinion, the accompanying consolidated statements of
financial position and the related consolidated income statements,
consolidated statements of comprehensive income, consolidated
cash flow statements and consolidated statements of changes in
equity, present fairly, in all material respects, the financial position
of National Grid plc and its subsidiaries at 31 March 2014 and
31March 2013, and the results of their operations and their cash
flows for each of the three years in the period ended 31 March
2014 in conformity with International Financial Reporting
Standards as issued by the International Accounting Standards
Board and in conformity with International Financial Reporting
Standards as adopted by the European Union.
Also in our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of
31March 2014, based on criteria established in Internal Control
– Integrated Framework (1992) issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
The Company’s management is responsible for these financial
statements, for maintaining effective internal control over financial
reporting and for its assessment of the effectiveness of internal
control over financial reporting, included in the Additional
Information section appearing on page 170 of the 2014 Annual
Report and Accounts. As discussed in note 1, theGroup
changedthe manner in which it accounts for employeebenefits.
Our responsibility is to express opinions on these financial
statements and on the Company’s internal control over financial
reporting based on our integrated audits. We conducted our
audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of
material misstatement and whether effective internal control over
financial reporting was maintained in all material respects. Our
audits of the financial statements included 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 statement presentation. Our audit of internal
control over financial reporting included obtaining an understanding
of internal control over financial reporting, assessing the risk that
amaterial weakness exists, and testing and evaluating the design
and operating effectiveness of internal control based on the assessed
risk. Our audits also included performing such other procedures
as we considered necessary in the circumstances. We believe
thatour audits provide 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 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
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
London
United Kingdom
21 May 2014
Report of Independent Registered
Public Accounting Firm
to the Board of Directors and Shareholders of National Grid plc
81