Vodafone 2009 Annual Report Download - page 72

70 Vodafone Group Plc Annual Report 2009
Audit report on internal controls
Because of the inherent limitations of internal control over financial reporting,
including the possibility of collusion or improper management override of controls,
material misstatements due to error or fraud may not be prevented or detected on a
timely basis. Also, projections of any evaluation of the effectiveness of the internal
control over financial reporting to future periods are subject to the risk that the
controls may become inadequate because of changes in conditions, or that the
degree of compliance with the policies or procedures may deteriorate.
In our opinion, the Group maintained, in all material respects, effective internal
control over financial reporting as of 31 March 2009, based on the criteria established
in Internal Control – Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission.
We have also audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), the consolidated financial statements of
the Group as of and for the year ended 31 March 2009, prepared in conformity with
International Financial Reporting Standards (‘IFRS’), as adopted by the European
Union and IFRS as issued by the International Accounting Standards Board. Our report
dated 19 May 2009 expressed an unqualified opinion on those financial statements.
Deloitte LLP
Chartered Accountants and Registered Auditors
London
United Kingdom
19 May 2009
Report of independent registered public accounting rm
to the members of Vodafone Group Plc
We have audited the internal control over financial reporting of Vodafone Group Plc
and subsidiaries and applicable joint ventures (the ‘Group’) as of 31 March 2009 based
on criteria established in Internal Control – Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission. As described
in management’s report on internal control over financial reporting, management
excluded from its assessment the inter nal control over financial reporting at Vodacom
Group (Pty) Limited (‘Vodacom’), as the Group does not have the ability to dictate,
modify or assess the controls. The Group’s proportionate interest in Vodacom’s total
assets, net assets, revenue and profit for the year is £1,749 million, £591 million,
£1,778 million and £198 million, respectively. Accordingly, our audit did not include
the internal control over financial reporting at Vodacom. Management is not required
to evaluate the internal controls of entities accounted for under the equity method.
Accordingly, the internal controls of these entities, which contributed a net profit
of £4,091 million (2008: £2,876 million) to the profit (2008: profit) for the financial
year, have not been assessed, except relating to controls over the recording of
amounts relating to the investments that are recorded in the Group’s consolidated
financial statements.
The Group’s management is responsible for maintaining effective internal control
over financial reporting and for its assessment of the effectiveness of internal control
over financial reporting, included in the accompanying management’s report on
internal control over financial reporting. Our responsibility is to express an opinion
on the Group’s internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether effective
internal control over financial reporting was maintained in all material respects. Our
audit included obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, testing and evaluating the design
and operating effectiveness of internal control based on the assessed risk, and
performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.
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 (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) 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 (3) 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.