eTrade 2002 Annual Report Download - page 89

Table of Contents
Index to Financial Statements
INDEPENDENT AUDITORS’ REPORT
To the Board of Directors and Shareholders of
E*TRADE Group, Inc.:
We have audited the consolidated balance sheets of E*TRADE Group, Inc. and subsidiaries (the “Company”) as of December 31, 2002 and
2001, and the related consolidated statements of operations, shareholders’ equity, and cash flows for the years ended December 31, 2002 and
2001, the three months ended December 31, 2000 and the year ended September 30, 2000. These consolidated financial statements are the
responsibility of the Company’ s management. Our responsibility is to express an opinion on the consolidated financial statements based on our
audits. We did not audit the statements of operations, shareholders’ equity and cash flows of E*TRADE Financial Corporation (“ETFC”) for
the year ended September 30, 2000, which statements reflect net revenues of $140,489,000 for the year then ended. Those statements were
audited by other auditors who have ceased operations; their report (which expressed an unqualified opinion on the financial statements of ETFC
for that period) has been furnished to us, and our opinion, insofar as it relates to the amounts included for ETFC is based solely on the report of
such other auditors.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall consolidated financial statement presentation. We believe that our audits and the report of the other auditors provide a
reasonable basis for our opinion.
In our opinion, based on our audits and the report of the other auditors, the consolidated financial statements referred to above present fairly, in
all material respects, the financial position of E*TRADE Group, Inc. and subsidiaries at December 31, 2002 and 2001, and the results of their
operations and their cash flows for the periods stated above in conformity with accounting principles generally accepted in the United States of
America.
As discussed in Note 1, the consolidated financial statements give retroactive effect to the classification of gains or losses on early
extinguishment of debt, in accordance with Statement of Financial Accounting Standards No. 145, Rescission of FASB Statement No. 4, 44 and
64, Amendment of FASB Statements No. 13 and Technical Corrections. Also, as discussed in Note 23, effective January 1, 2002, the Company
changed its method of accounting for goodwill and other intangible assets to conform to Statement of Financial Accounting Standards No. 142,
Goodwill and Other Intangible Assets .
/s/D ELOITTE & T OUCHE LLP
San Jose, California
March 18, 2003
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