This report is made solely to the BBCs Governors, as a body, in accordance with the Royal Charter
for the continuance of the BBC which came into force on 1 May 1996 (the Charter) and the Financial
Memorandum with the Foreign and Commonwealth Office. Our audit work has been undertaken
so that we might state to the BBCs Governors those matters we are required to state to them in an
auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the BBC and the BBCs Governors as a body, for our
audit work, for this report, or for the opinions we have formed.
Respective responsibilities of the Governors and BBC World Service Management
Board and auditors
The Governors and Management Board are responsible for preparing the Annual Review
including, as described above, the financial statements in accordance with applicable United
Kingdom law and accounting standards. Our responsibilities as independent auditors are
established in the United Kingdom by statute, by the Auditing Practices Board, our professions
ethical guidance and, in accordance with the terms of our appointment, the Companies Act 1985.
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 1985. We also report
to you if, in our opinion, the financial review is not consistent with the financial statements, if BBC World Service 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 Management Board remuneration and transactions with
BBC World Service is not disclosed.
We read the other information contained in the Annual Review, including the corporate governance statement, and consider whether it is consistent with the audited financial
statements. We consider the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the financial statements.
In addition to our audit of the financial statements, the Governors and Management Board have instructed us to review their corporate governance statement as if BBC World Service were
required to comply with the Listing Rules of the Financial Services Authority in relation to these
matters. We review whether the corporate governance statement reflects BBC World Services compliance with the seven provisions of the Combined Code specified for audit review by those
rules, and we report if it does not. We are not required to form an opinion on the effectiveness
of BBC World Services corporate governance procedures or its internal controls.
Basis of audit 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 Governors and Management Board in the preparation of the
financial statements, and of whether the accounting policies are appropriate to BBC World
Services 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.
In our opinion the financial statements give a true and fair view of the state of affairs of BBC
World Service at 31 March 2003 and of the surplus of BBC World Service for the year then
ended and have been properly prepared in accordance with the provisions of the BBCs
Charter and Agreement, the Financial Memorandum and the provisions of the Companies
Act 1985 as if those provisions had applied to these financial statements.
Chartered Accountants, Registered Auditor, London
19 June 2003