annual report 2007 - the Admiral Group plc

48 FINANCIAL STATEMENTSIndependent auditor’s reportto the members of Admiral Group plcWe have audited the Group and ParentCompany financial statements (the ‘’financialstatements’’) of Admiral Group plc for the yearended 31 December 2007 which comprise theGroup Income Statement, the Parent CompanyProfit and Loss Account, the Group andParent Company Balance Sheets, the GroupCash Flow Statement, the Group Statementof Recognised Income and Expenses and therelated notes. These financial statements havebeen prepared under the accounting policiesset out therein. We have also audited theinformation in the Directors’ RemunerationReport that is described as having beenaudited.This report is made solely to the Company’smembers, as a body, in accordance withsection 235 of the Companies Act 1985. Ouraudit work has been undertaken so that wemight state to the Company’s members thosematters we are required to state to them inan auditor’s report and for no other purpose.To the fullest extent permitted by law, we donot accept or assume responsibility to anyoneother than the Company and the Company’smembers as a body, for our audit work, for thisreport, or for the opinions we have formed.Respective responsibilities ofDirectors and auditorsThe Directors’ responsibilities for preparingthe Annual Report and the Group financialstatements in accordance with applicablelaw and International Financial ReportingStandards (IFRSs) as adopted by the EU, andfor preparing the Parent Company financialstatements and the Directors’ RemunerationReport in accordance with applicable lawand UK Accounting Standards (UK GenerallyAccepted Accounting Practice) are set out inthe Statement of Directors’ Responsibilities inthe Directors' Report.We report to you our opinion as to whetherthe financial statements give a true and fairview and whether the financial statementsand the part of the Directors’ RemunerationReport to be audited have been properlyprepared in accordance with the CompaniesAct 1985 and, as regards the Group financialstatements, Article 4 of the IAS Regulation.We also report to you whether in our opinionthe information given in the Directors’ Reportis consistent with the financial statements.The information given in the Directors’ Reportincludes that specific information presentedin the Chairman’s statements, the ChiefExecutive’s statement and the financial reviewthat is cross referred from the business reviewsection of the Directors’ Report.In addition we report to you if, in our opinion,the Company has not kept proper accountingrecords, if we have not received all theinformation and explanations we require forour audit, or if information specified by lawregarding Directors’ remuneration and othertransactions is not disclosed.We review whether the CorporateGovernance Statement reflects the Company’scompliance with the nine provisions of the2003 Combined Code specified for our reviewby the Listing Rules of the Financial ServicesAuthority, and we report if it does not. Weare not required to consider whether theBoard’s statements on internal control coverall risks and controls, or form an opinion onthe effectiveness of the Group’s corporategovernance procedures or its risk and controlprocedures.Our responsibility is to audit the financialstatements and the part of the Directors’Remuneration Report to be audited inaccordance with relevant legal and regulatoryrequirements and International Standards onAuditing (UK and Ireland).