Tesco 1999 Annual Report Download - page 19

TESCO PLC ANNUAL REPORT 1999 17
Auditors’ report to the shareholders of Tesco PLC
We have audited the financial statements on pages 18 to 40
which have been prepared under the historical cost convention
and the accounting policies set out on pages 22 and 23.
Respective responsibilities of directors and auditors
The directors are responsible for preparing the Annual Report
including, as described above, 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. 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 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 pages 9 to 11 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 company’s corporate
governance procedures or its internal controls.
Basis of opinion
We conducted our audit in accordance with 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. 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
27 February 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.
Chartered Accountants and Registered Auditors
London
12 April 1999
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 pages 18 to 40 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.