National Grid 2016 Annual Report Download - page 95

Audit opinion for Form 20-F
In our opinion, the accompanying consolidated statement of financial
position and the related consolidated income statement, consolidated
statement of comprehensive income, consolidated cash flow
statement and consolidated statement of changes in equity, present
fairly, in all material respects, the financial position of National Grid plc
and its subsidiaries at 31 March 2016 and 31 March 2015, and the
results of their operations and their cash flows for each of the three
years in the period ended 31 March 2016 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 2016, based on criteria established in Internal Control –
Integrated Framework (2013) 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 183 of the 2016 Annual Report and Accounts.
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
18 May 2016
Financial Statements
93National Grid Annual Report and Accounts 2015/16 Financial Statements
Report of Independent Registered Public Accounting Firm
to the Board of Directors and Shareholders of National Grid plc