BT 1999 Annual Report Download - page 59

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58
We have audited the financial statements on page 59 to 103.
We have also examined the amounts disclosed relating to
the directors’ remuneration, share options, long term
incentives and pension entitlements on pages 47 to 55.
Respective responsibilities of directors
and auditors
The directors are responsible for preparing the annual
report including, as described on page 57, the financial
statements. Our responsibilities, as independent auditors,
are established by statute, the Auditing Practices Board,
the Listing Rules of the London Stock Exchange and
our profession’s ethical guidance.
We report to you our opinion as to whether the financial
statements 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 report of the
directors is not consistent with the financial statements, 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 is not disclosed.
We read the other information contained in the annual
report and consider the implications for our report if we
become aware of any apparent misstatements or material
inconsistencies with the financial statements.
We review whether the statement on page 44 reflects
the company’s compliance with those provisions of the
Combined Code specified for our review by the London
Stock Exchange, and we report if it does not. We are not
required to form an opinion on the effectiveness of the
group’s corporate governance procedures or its internal
controls.
Basis of audit 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 irregularity or error. 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:
• give a true and fair view of the state of affairs of the
company and the group at 31 March 1999 and of the
profit 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 1999 and
31 March 1998 and the results of its operations and its
cash flows for the years ended 31 March 1999,
31 March 1998 and 31 March 1997 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 on pages 97 to 99.
PricewaterhouseCoopers
Chartered Accountants and Registered Auditors
London
25 MAY 1999
Report of the auditors
TO THE SHAREHOLDERS OF BRITISH TELECOMMUNICATIONS plc