RAS-2002 — Page 48

HONG KONG BRANCH OF THE

ROYAL ASIATIC SOCIETY

A Registered Charitable Institution

Report and Financial Statements For the year ended 31 December 2002

AUDITORS' REPORT

TO THE MEMBERS OF THE HONG KONG BRANCH OF THE ROYAL ASIATIC SOCIETY

We have audited the financial statements which have been prepared in accordance with accounting principles generally accepted in Hong Kong.

Respective responsibilities of Council and auditors

The Council of the Hong Kong Branch of the Society is responsible for the preparation of financial statements which give a true and fair view. In preparing financial statements which give a true and fair view it is fundamental that appropriate accounting policies are selected and applied consistently.

We are engaged to form an independent opinion, based on our audit, on those statements and to report our opinion to you.

Basis of opinion

We conducted our audit in accordance with Statements of Auditing Standards issued by the Hong Kong Society of Accountants. 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 judgments made by the Council in the preparation of the financial statements, and of whether the accounting policies are appropriate to the circumstances of the Society, consistently applied and adequately disclosed.

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