bat plc annual report 2007 - Report of the independent auditors

 
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Annual Report and Accounts 2007

TO THE MEMBERS OF BRITISH AMERICAN TOBACCO P.L.C.

We have audited the parent company Financial Statements of British American Tobacco p.l.c. for the year ended 31 December 2007 which comprise the Balance Sheet and the related notes. These parent company 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.

We have reported separately on the Group Financial Statements of British American Tobacco p.l.c. for the year ended 31 December 2007.

Respective responsibilities of Directors and auditors

The Directors’ responsibilities for preparing the Annual Report and Accounts, including the Remuneration report and the parent company Financial Statements, in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of directors’ responsibility in relation to the Financial Statements, included in the Directors’ report.

Our responsibility is to audit the parent company 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 parent company Financial Statements give a true and fair view and whether the parent company 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 whether, in our opinion, the information given in the Directors’ report is consistent with the parent company Financial Statements. The information given in the Directors’ report includes that specific information presented in the Operating and financial review that is cross referred from the Business review section of the Directors’ report.

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 read other information contained in the Annual Report and Accounts and consider whether it is consistent with the audited parent company Financial Statements. The other information comprises only the Quick read, the Operating and financial review, the Board of directors, the Management Board, the Directors’ report, the unaudited part of the Remuneration report, the Corporate governance statement, the Five year summary, the Quarterly analyses of profit, the Group Financial Statements and the Shareholder information. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the parent company 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 parent company 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 parent company 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 parent company 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 parent company Financial Statements and the part of the Remuneration report to be audited.

Opinion

In our opinion:

  • the parent company Financial Statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the Company’s affairs as at 31 December 2007;
     
  • the parent company Financial Statements and the part of the Remuneration report to be audited have been properly prepared in accordance with the Companies Act 1985; and
     
  • the information given in the Directors’ report is consistent with the parent company Financial Statements.

PricewaterhouseCoopers LLP
Chartered Accountants and Registered Auditors
1 Embankment Place, London

27 February 2008

© British American Tobacco