Report & accounts 2002 in full - Unilever

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The role of the Audit Committee is to assist the Unilever Board in fulfilling its oversight responsibilities regarding the integrity of Unilever’s financial statements, risk management and internal control, compliance with legal and regulatory requirements, the external auditors’ performance, qualifications and independence, and the performance of the internal audit function. During the year ended 31 December 2002 the principal activities of the Committee were as follows: Financial Statements The Committee considered reports from the Financial Director on the quarterly and annual financial statements. It also reviewed proposed changes in accounting principles in response to the changes in Netherlands, UK and US law and UK GAAP. Audit of the Annual Accounts PricewaterhouseCoopers, Unilever’s external auditors, reported in depth to the Committee on the scope and outcome of the annual audit, and management’s response. Their reports included accounting matters, governance and control, and accounting developments. Risk Management and Internal Control Arrangements The Committee reviewed Unilever's overall approach to risk management and control, and its processes, outcomes and disclosure, including specifically: • Corporate Audit’s interim and year-end reports on the Status of Risk Management & Control, and management’s response. • The Corporate Risk Committee’s annual report, which included its recommendation for the Board's statement on internal control, its analysis of the 2002 risk assessment process, and the corporate risks identified for 2003. • The reports from the Code of Business Principles Compliance Committee. • Controls over trade marketing investments. Unilever Annual Report & Accounts and Form 20-F 2002 Report of the Audit Committee 61 External Auditors The report from PricewaterhouseCoopers confirming their independence and objectivity was reviewed by the Committee. It also reviewed the audit, audit-related, tax and consulting services provided by PricewaterhouseCoopers, and compliance with Unilever’s policy, introduced in January 2002, under which the types of engagements for which the external auditors can be used are prescribed. The Committee oversaw the external auditor tender process which was conducted during the year, and made its formal recommendation to the Board, which was adopted. (See page 45 for further details of the tender.) Internal Audit Function The Committee engaged in discussion and review of the Corporate Audit Department’s audit plan for the year, together with its budget and resource requirements. Audit Committee Charter The Committee’s charter has been updated to reflect recent developments in corporate governance in the UK, the European Union and the US. The revised charter enhances the Committee’s role and responsibilities, and in particular makes it responsible for overseeing Unilever’s relations with the external auditors. The Audit Committee Charter can be viewed on Unilever’s external website at www.unilever.com. Report of the Directors
62 Financial statements – Contents Statement of directors’ responsibilities 63 Report of independent auditors 65 Accounting information and policies 66 Consolidated profit and loss account 69 Consolidated statement of total recognised gains and losses 70 Consolidated cash flow statement 70 Consolidated balance sheet 71 Notes to the consolidated accounts 72 1 Segmental information 72 2 Operating costs 77 3 Staff costs and employees 77 4 Exceptional items 77 5 Interest 78 6 Taxation on profit on ordinary activities 78 7 Combined earnings per share 79 8 Dividends on ordinary capital 80 9 Goodwill and intangible assets 80 10 Tangible fixed assets 81 11 Fixed investments 81 12 Stocks 82 13 Debtors 82 14 Net funds/(debt) 83 15 Financial instruments 85 16 Trade and other creditors 86 17 Pensions and similar obligations 87 18 Deferred taxation 94 19 Restructuring and other provisions 95 20 Capital and reserves 96 21 Called up share capital 97 22 Profit retained 98 23 Other reserves 98 24 Commitments and contingent liabilities 99 25 Acquisition and disposal of group companies 99 26 Reconciliation of group operating profit to operating cash flows 101 27 Analysis of cash flows for headings netted in the cash flow statement 102 28 Analysis of net funds/(debt) 103 29 Equity-based compensation plans 103 30 Summarised accounts of the NV and PLC parts of the Group 112 Five year record 113 Additional information for US investors 118 Principal group companies and fixed investments 128 Company accounts – Unilever N.V. 132 Notes to the company accounts – Unilever N.V. 133 Further statutory information – Unilever N.V. 134 Company accounts – Unilever PLC 135 Notes to the company accounts – Unilever PLC 136 Further statutory information and other information – Unilever PLC 137 Unilever Annual Report & Accounts and Form 20-F 2002
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Disclaimer Notes to the Annual Repo
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A truly multi-local multinational U
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2 General information The Unilever
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4 Financial highlights at current r
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6 Chairmen’s statement responded
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8 Our code of business principles C
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114 Five year record Unilever Group
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116 Five year record Unilever Group
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128 Principal group companies and f
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130 Principal group companies and f
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132 Company accounts Unilever N.V.
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138 Control of Unilever Share capit
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140 Control of Unilever If you are
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142 Analysis of shareholding Signif
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146 Taxation for US residents Unite
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148 Cross reference to Form 20-F PA
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150 Financial calendar and addresse
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Design: Fitch: London Typesetting:
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Report & accounts 2002 in full - Unilever

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