Tesco 1998 Annual Report Download - page 17

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Auditors’ report to the shareholders of Tesco PLC
We have audited the financial statements on pages 16 to 39 which
have been prepared under the historical cost convention, the
accounting policies set out on pages 20 and 21 and the directors’
emoluments and share details included on pages 10 to 14.
Respective responsibilities of directors and auditors
As described above, the company’s directors are responsible for
the preparation of financial statements. It is our responsiblity to
form an independent opinion, based on our audit, on those
statements and to report our opinion to you.
Basis of opinion
We conducted our audit in accordance with Au d i t i n g
S t a n d a rds 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.
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 true and fair view of
the state of affairs of the company and of the Group as at
28 February 1998 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.
Chartered Accountants and Registered Auditors
London
20 April 1998
Directors’ responsibilities for the preparation of the financial statements
The directors are required by the Companies Act 1985 to
prepare financial statements for each financial year which give
a true and fair view of the state of affairs of the company and
the Group as at the end of the financial year and of the profit
or loss for the financial year.
The directors consider that in preparing the financial
statements on page 16 to 39 the company has used appropriate
accounting policies, consistently applied and supported by
reasonable and prudent judgements and estimates, and that all
accounting standards which they consider to be applicable have
been followed.
The directors have responsibility for ensuring that the company
keeps accounting records which disclose with reasonable
accuracy the financial position of the company and which enable
them to ensure that the financial statements comply with the
Companies Act 1985.
The directors have general responsibility for taking such steps as
are reasonably open to them to safeguard the assets of the Group
and to prevent and detect fraud and other irregularities.
Price Waterhouse