Holiday Inn 2004 Annual Report Download - page 75

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS
OF INTERCONTINENTAL HOTELS GROUP PLC
We have audited the Group’s financial statements for the year
ended 31 December 2004 which comprise the Group profit and
loss account, statement of total recognised Group gains and
losses, note of historical cost Group profits and losses,
reconciliation of movement in shareholders’ funds, Group cash
flow statement, balance sheets, accounting policies and the
related notes 1 to 38. These financial statements have been
prepared on the basis of the accounting policies set out therein.
We have also audited the information in the 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 are responsible for preparing the Annual Report,
including the financial statements which are required to be
prepared in accordance with applicable United Kingdom law and
accounting standards as set out in the Statement of Directors’
Responsibilities in relation to the financial statements.
Our responsibility is to audit the financial statements and the
part of the 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 financial
statements give a true and fair view and whether the financial
statements and the part of the 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 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 with the Group
is not disclosed.
We review whether the Corporate Governance statement reflects
the Company’s compliance with the nine provisions of the 2003
FRC Code specified for our review by the Listing Rules of the
Financial Services Authority 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 financial
statements. This other information comprises the Financial
Highlights, Operating and Financial Review, International Financial
Reporting Information, Directors’ Report, Corporate Governance
statement, Audit Committee Report, unaudited part of the
Remuneration Report, US GAAP Information and Four Year
Review. We consider the implications for our report if we become
aware of any apparent misstatements or material inconsistencies
with the financial statements. 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 financial statements and the
part of the 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 financial statements, 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 financial statements and the part of the
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 financial
statements and the part of the Remuneration Report to be audited.
OPINION
In our opinion, the financial statements give a true and fair view
of the state of affairs of the Company and of the Group as at
31 December 2004 and of the profit of the Group for the year
then ended; and the financial statements and the part of the
Remuneration Report to be audited have been properly prepared
in accordance with the Companies Act 1985.
Ernst & Young LLP,
Registered Auditor, London.
9 March 2005
InterContinental Hotels Group 2004 73
Report of the independent auditors