Aviva 2006 Annual Report Download - page 223

Overview Business review Governance Financial statements Other information
Aviva plc
Annual Report and Accounts 2006 219
Independent auditor’s report to the directors of Aviva plc on the
alternative method of reporting long-term business profits
Wehave audited the alternative method of reporting long-term
business on pages 220 to 243 in respect of the year ended
31 December 2006, which comprises a European Embedded Value
basis Summarised Consolidated Income Statement, Consolidated
Statement of Recognised Income and Expense, Summarised
reconciliation of movements in consolidated shareholders’ funds,
Summarised Consolidated Balance Sheet and the related notes on
pages 220 to 243. The alternative method of reporting long-term
business has been prepared in accordance with the European
Embedded Value Principles published by the CFO Forum in May
2004 and the Additional Guidance on European Embedded Value
Disclosures published by the CFO Forum in October 2005 as
described on, and using the methodology and assumptions set out
on, pages 224 to 226.
This report is made solely to the Company’s directors, as a body.
Our audit work has been undertaken so that we might state to the
Company’s directors 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 directors as
abody, for our audit work, for this report, or for the opinions we
have formed.
Respective responsibilities of directors and auditors
The directors are responsible for preparing the alternative method
of reporting long-term business on the above European Embedded
Value basis.
Our responsibilities, as independent auditors, in relation to the
alternative method of reporting long-term business are established
in the UK by the Auditing Practices Board and our profession’s
ethical guidance. Wereport to you our opinion as to whether the
alternative method of reporting long-term business has been
properly prepared in accordance with the European Embedded
Value basis. Wealso report to you if we have not received all the
information and explanations we requirefor our audit of the
alternative method of reporting long-term business.
Basis of audit opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test basis, of
evidence relevant to the amounts and disclosures in the alternative
method of reporting long-term business. It also includes an
assessment of the significant estimates and judgements made
by the directors in the preparation of the alternative method of
reporting long-term business, 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 alternative method of reporting long-term
business stated on the European Embedded Value basis is 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 the alternative method of
reporting long-term business.
Opinion
In our opinion the alternative method of reporting long-term
business for the year ended 31 December 2006 has been properly
prepared in accordance with the European Embedded Value basis,
using the methodology and assumptions set out on pages
224 to 226.
Ernst & Young LLP
Registered Auditor
London
28 February 2007