Marks and Spencer 2007 Annual Report Download - page 53

Auditors’ report
INDEPENDENT AUDITORS’ REPORT TO THE
MEMBERS OF MARKS AND SPENCER GROUP PLC
We have audited the group and parent company financial
statements (the ‘‘financial statements’’) of Marks and Spencer
Group plc for the year ended 31 March 2007 which comprise
the consolidated and Company income statements, the
consolidated and Company balance sheets, the consolidated
and Company cash flow statements, the consolidated
statement of recognised income and expense, the Company
statement of changes in shareholders’ equity and the related
group and parent company notes. These financial statements
have been prepared under the accounting policies set out therein.
We have also audited the information in the Remuneration report
that is described as having been audited.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the Annual report,
the Remuneration report and the financial statements in
accordance with applicable law and International Financial
Reporting Standards (IFRSs) as adopted by the European Union
are set out in the Statement of Directors’ Responsibilities.
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 and International
Standards on Auditing (UK and Ireland). This report, including
the opinion, has been prepared for and only for the company’s
members as a body in accordance with Section 235 of the
Companies Act 1985 and for no other purpose. We do not, in
giving this opinion, accept or assume responsibility for any other
purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by
our prior consent in writing.
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 and, as regards the Group financial
statements, Article 4 of the IAS Regulation. We also report to
you whether in our opinion the information given in the Group
directors’ report is consistent with the financial statements.
In addition we report to you if, in our opinion, 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 regarding directors’ remuneration
and other transactions is not disclosed.
We review whether the Corporate governance statement reflects
the company’s compliance with the nine provisions of the
Combined Code (2003) 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. The other information comprises only the Chairman’s
foreword, the Chief Executive’s business review, the Financial
review, the Corporate governance statement, the unaudited part
of the Remuneration report, the Group financial record and the
Shareholder information. 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 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
financial statements and the part of the Remuneration report to
be audited. It also includes an assessment of the significant
estimates and judgments made by the directors in the
preparation of the financial statements, and of whether the
accounting policies are appropriate to the group’s and
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 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, in
accordance with IFRSs as adopted by the European Union,
of the state of the Group’s and the parent company’s affairs
as at 31 March 2007 and of the Group’s and the parent
company’s profit and cash flows for the year then ended;
• the financial statements and the part of the Remuneration
report to be audited have been properly prepared in
accordance with the Companies Act 1985 and, as regards
the group financial statements, Article 4 of the IAS
Regulation; and
• the information given in the Group directors’ report is
consistent with the financial statements.
PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
London
21 May 2007
www.marksandspencer.com/annualreport2007 MARKS AND SPENCER GROUP PLC 51
Executive Team Your Board Financial
Review Governance Financials
Shareholder Information