INDEPENDENT AUDITORS' REPORT
to the members of The Medical Defence Union Ltd
We have audited the group and parent company financial Basis of audit opinion
statements ('the financial statements') of The Medical
Defence Union Ltd for the year ended 31 December 2008
We conducted our audit in accordance with International
which comprise the consolidated income and expenditure
Standards on Auditing (UK and Ireland) issued by the Auditing
account, the consolidated statement of total recognised
Practices Board. An audit includes examination, on a test basis,
gains and losses, the consolidated and company balance
of evidence relevant to the amounts and disclosures in the
sheets, the consolidated cash flow statement and the related
financial statements. It also includes an assessment of the
notes. The financial statements have been prepared under
significant estimates and judgments made by the directors in
the accounting policies set out therein.
the preparation of the financial statements, and of whether
the accounting policies are appropriate to the group's and
This report is made solely to the company's members, as a
company's circumstances, consistently applied and adequately
body, in accordance with section 235 of the Companies Act
disclosed.
1985. Our audit work has been undertaken so that we might
state to the company's members those matters we are
We planned and performed our audit so as to obtain all the
required to state to them in an auditors' report and for no
information and explanations we considered necessary in order
other purpose. To the fullest extent permitted by law, we do to provide us with sufficient evidence to give reasonable
not accept or assume responsibility to anyone other than the assurance that the financial statements are free from material
company and the company's members as a body, for our misstatement, whether caused by fraud or other irregularity or
audit work, for this report, or for the opinions we have error. In forming our opinion we also evaluated the overall
formed. adequacy of the presentation of information in the financial
Respective responsibilities of directors and auditors
statements.
The directors' responsibilities for preparing the annual report
Opinion
and the financial statements in accordance with applicable law In our opinion:
and United Kingdom accounting standards ('United Kingdom
Generally Accepted Accounting Practice') are set out in the
•the financial statements give a true and fair view, in
statement of directors' responsibilities.
accordance with United Kingdom Generally Accepted
Accounting Practice, of the state of the group's and the
Our responsibility is to audit the financial statements in parent company's affairs as at 31 December 2008 and of the
accordance with relevant legal and regulatory requirements
group's result for the year then ended;
and International Standards on Auditing (UK and Ireland).
• the financial statements have been properly prepared in
We report to you our opinion as to whether the financial
accordance with the Companies Act 1985; and
statements give a true and fair view and have been properly
prepared in accordance with the Companies Act 1985. We
•the information given in the directors' report is consistent
also report to you whether in our opinion the information
with the financial statements.
given in the directors' report is consistent with the financial
statements. This information in the directors' report includes
that specific information presented in the operating and
PKF (UK) LLP
financial review that is cross-referenced to the business
Registered Auditors
review section of the directors' report.
London, UK
7 May 2009
In addition we report to you if, in our opinion, the company
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
directors' remuneration and other transactions is not
disclosed.
We read other information contained in the annual report
and consider whether it is consistent with the audited
financial statements. The other information comprises only
the directors' report, the report of the chairman, and the
operating and financial review. We consider the implications
for our report if we become aware of any apparent
misstatements or material inconsistencies with the financial
statements. Our responsibilities do not extend to any other
information.
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