Aviva 2001 Annual Report Download - page 45

Statement of directors’responsibilities
The directors are required to ensure that accounts are prepared
for each accounting period which comply with the relevant
provisions of the Companies Act 1985, and which give a true and
fair view of the state of affairs of the Company and the Group as
at the end of the accounting period and of the profit or loss for
that period. Suitable accounting policies have to be used and
applied consistently in preparing accounts, using reasonable and
prudent judgements and estimates on the going concern basis
unless it is inappropriate to presume that the Company and the
Group will continue in business. Applicable accounting and
financial reporting standards also have to be followed, with any
material departures being disclosed and explained.
The directors are responsible for maintaining proper accounting
records which disclose with reasonable accuracy at any time the
financial position of the Company and the Group. They are also
responsible for safeguarding the assets of the Company and the
Group and for ensuring that controls are in place for the
prevention and detection of fraud and other irregularities.
We have audited the Group’s accounts for the year ended
31 December 2001 which comprise the Accounting policies, the
Consolidated profit and loss account, Reconciliation of Group
operating profit to profit on ordinary activities before taxation,
Consolidated statement of total recognised gains and losses,
Reconciliation of movements in consolidated shareholders’funds,
Consolidated Group balance sheet, Consolidated cash flow
statement and Company balance sheet, and the related notes
1 to 47. These accounts have been prepared on the basis of the
accounting policies set out therein.
Respective responsibilities of directors and auditors
The directors’responsibilities for preparing the Annual report
and the accounts in accordance with applicable United Kingdom
law and accounting standards are set out in the Statement of
directors’responsibilities above.
Our responsibility is to audit the accounts 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 accounts give a
true and fair view and are 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 accounts, 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 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 accounts.
This other information comprises the Chairman’s statement,
Group at a glance, Group Chief Executive’s review, Operating
review, Financial review, Directors’report, Corporate governance
statement and Remuneration report. We consider the implications
for our report if we become aware of any apparent misstatements
or material inconsistencies with the accounts. 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 accounts.
It also includes an assessment of the significant estimates and
judgements made by the directors in the preparation of the
accounts, 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 accounts 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 accounts.
Equalisation provision Our evaluation of the presentation of
information in the accounts has had regard to the statutory
requirement for insurance companies to maintain an
equalisation provision. The nature of the equalisation provision,
the amount set aside at 31 December 2001 and the effect of the
movement in the provision during the year on the general
business technical result and profit on ordinary activities before
tax, are disclosed in accounting policy note U and note 38 to
the accounts.
Opinion In our opinion, the accounts give a true and fair view
of the state of affairs of the Company and of the Group as at
31 December 2001 and of the profit of the Group for the year
then ended and have been properly prepared in accordance with
the Companies Act 1985.
Ernst & Young LLP
Registered Auditor
London
26 February 2002
Independent auditor’s report to the members of CGNU plc
43 CGNU plc