Aviva 2002 Annual Report Download - page 57

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.
Statement of directors’ responsibilities
We have audited the Group’s accounts for the year ended
31 December 2002 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 49. These accounts have been prepared on the basis of the
accounting policies set out therein. We have also audited the
information in the Directors’ remuneration report that is described
as having been audited.
This report is made solely to the Company’s members, as a
body, in accordance with Section 235 of the Companies Act
1985. 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 auditors’ 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.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual report, the
Directors’ remuneration 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 and the part of the
Directors’ remuneration report to be audited 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 whether the accounts and the part of the
Directors’ remuneration report to be audited have been 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 the unaudited part of the Directors’ 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 and the part of the
Directors’ remuneration report to be audited. 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 and the part of the Directors’
remuneration report to be audited 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 and
the part of the Directors’ remuneration report to be audited.
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 2002
and the effect of the movement in the provision during the year
on the general business technical result and loss on ordinary
activities before tax, are disclosed in accounting policy T and
note 40 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
2002 and of the loss 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
25 February 2003
Independent auditors’ report to the members of Aviva plc
43 Aviva plc
Annual report + accounts 2002