BT 2009 Annual Report Download - page 80

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ADDITIONAL INFORMATION FINANCIAL STATEMENTS REPORT OF THE DIRECTORS BUSINESS AND FINANCIAL REVIEWS OVERVIEW
United States opinion
Report of Independent Registered Public
Accounting Firm to the Board of Directors and
Shareholders of BT Group plc (the ‘company’)
In our opinion, the accompanying Group income statements, Group
balance sheets, Group cash flow statements and Group statements
of recognised income and expense present fairly, in all material
respects, the financial position of BT Group plc and its subsidiaries
at 31 March 2009, and 2008 and the results of their operations
and cash flows for each of the three years in the period ended
31 March 2009, in conformity with International Financial
Reporting Standards (IFRSs) as issued by the International
Accounting Standards Board. Also, in our opinion the company
maintained, in all material respects, effective internal control over
financial reporting as of 31 March 2009, based on criteria
established in the Turnbull Guidance. The company’s management
are responsible for these financial statements, for maintaining
effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial
reporting, included in management’s evaluation of the
effectiveness of internal control over financial reporting as set out
in the first three paragraphs of Internal Control over financial
reporting in the Report of the Directors, Business policies of the
Form 20-F. Our responsibility is to express opinions on these
financial statements and on the company’s internal control over
financial reporting based on our integrated audits. We conducted
our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of
material misstatement and whether effective internal control over
financial reporting was maintained in all material respects. Our
audits of the financial statements included examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the
overall financial statement presentation. Our audit of internal
control over financial reporting included obtaining an
understanding of internal control over financial reporting, assessing
the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on
the assessed risk. Our audits also included performing such other
procedures as we considered necessary in the circumstances. We
believe that our audits provide a reasonable basis for our opinions.
A company’s internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over financial
reporting includes those policies and procedures that (i) pertain to
the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets of
the company; (ii) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are
being made only in accordance with authorisations of management
and directors of the company; and (iii) provide reasonable
assurance regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the company’s assets that could
have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are
subject to the risk that controls may become inadequate because of
changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
PricewaterhouseCoopers LLP
London, United Kingdom
13 May 2009
FINANCIAL STATEMENTS REPORT OF THE INDEPENDENT AUDITORS – CONSOLIDATED FINANCIAL STATEMENTS
BT GROUP PLC ANNUAL REPORT & FORM 20-F78
FINANCIAL STATEMENTS