Annual Report 2004 89
INDEPENDENT AUDIT REPORT TO MEMBERS OF SANTOS LTD
Scope
The financial report and directors’ responsibility
The financial report comprises the statement of financial performance, statement of financial position, statement of cash flows, accompanying notes
to the financial statements, and the directors’ declaration for both Santos Ltd (the “Company”) and Santos Group (the “Consolidated Entity”), for the
year ended 31 December 2004. The Consolidated Entity comprises both the Company and the entities it controlled during that year.
The Directors of the Company are responsible for the preparation and true and fair presentation of the financial report in accordance with the
Corporations Act 2001. This includes responsibility for the maintenance of adequate accounting records and internal controls that are designed to
prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report.
Audit approach
We conducted an independent audit in order to express an opinion to the members of the Company. Our audit was conducted in accordance with
Australian Auditing Standards in order to provide reasonable assurance as to whether the financial report is free of material misstatement. The nature
of an audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal control, and the
availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.
We performed procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001,
Australian Accounting Standards and other mandatory financial reporting requirements in Australia, a view which is consistent with our understanding
of the Company’s and the Consolidated Entity’s financial position, and of their performance as represented by the results of their operations and
cash flows.
We formed our audit opinion on the basis of these procedures, which included:
• examining, on a test basis, information to provide evidence supporting the amounts and disclosures in the financial report, and
• assessing the appropriateness of the accounting policies and disclosures used and the reasonableness of significant accounting estimates made
by the Directors.
While we considered the effectiveness of management’s internal controls over financial reporting when determining the nature and extent of our
procedures, our audit was not designed to provide assurance on internal controls.
Independence
In conducting our audit, we followed applicable independence requirements of Australian professional ethical pronouncements and the Corporations
Act 2001.
Audit opinion
In our opinion, the financial report of Santos Ltd is in accordance with:
(a) the Corporations Act 2001, including:
(i) giving a true and fair view of the Company’s and the Consolidated Entity’s financial position as at 31 December 2004 and of their
performance for the financial year ended on that date; and
(ii) complying with Accounting Standards in Australia and the Corporations Regulations 2001; and
(b) other mandatory professional reporting requirements in Australia.
KPMG Peter A Jovic
Partner
Adelaide
23 February 2005
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