BT 1998 Annual Report Download - page 42

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We have audited the financial statements on page 45 to 79.
We have also examined the amounts disclosed relating to
the directors’ remuneration, share options and pension
entitlements on pages 35 to 40.
Respective responsibilities of directors
and auditors
As described in the statement of directors’ responsibility,
the company’s directors are responsible for the
preparation of financial statements. It is our responsibility
to form an independent opinion, based on our audit, on
those financial statements and to report our opinion
to you.
Basis of opinion
We conducted our audit in accordance with United
Kingdom Auditing Standards issued by the Auditing
Practices Board which are substantially the same as
auditing standards generally accepted in the United States.
An audit includes examination, on a test basis, of evidence
relevant to the amounts and disclosures in the financial
statements. It also includes an assessment of the
significant estimates and judgements made by the
directors in the preparation of the financial statements,
and of whether the accounting policies are appropriate to
the company’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 financial statements
are free from material misstatement, whether caused by
fraud or other ir regularity or er ror. In forming our opinion
we also evaluated the overall adequacy of the presentation
of information in the financial statements.
Opinion
In our opinion the financial statements referred to above:
•give a true and fair view of the state of affairs of the
company and the group at 31 March 1998 and of the
profit, total recognised gains and cash flows of the
group for the year then ended and have been properly
prepared in accordance with the Companies Act 1985.
• present fairly, in all material respects, the consolidated
financial position of the group as at 31 March 1998 and
31 March 1997 and the results of their operations, total
recognised gains and their cash flows for the years
ended 31 March 1998, 31 March 1997 and 31 March
1996 in conformity with accounting principles generally
accepted in the United Kingdom. The principles differ
in certain respects from accounting principles generally
accepted in the United States. The effect of the
differences in the determination of net income,
shareholders’ equity and cash flows is shown in
note 30 to the financial statements.
Coopers & Lybrand
Chartered Accountants and Registered Auditors
London
26 MAY 1998
Report of the auditors
T O T H E SH A R E HO L D E R S O F B R I T I S H T ELE C O M M U N ICAT I O N S p l c