Annual Report Introduction
IAG's Four Principles Paying Claims Understanding & Pricing Risk Managing Costs Reducing Risk
Group Operating Performance
Chairman's Review
CEO's Review
Business Overview
Executive Team
Review of Operations
Board of Directors
Corporate Governance
Financial Report
Five Year Financial Summary
Directors Report
Directors Report
Statements of Financial Performance
Statements of Financial Position
Statements of Cash Flows
Notes to Financial Statements
Directors' Declaration
Independent Auditors Report
Shareholder Information
Corporate Directory
INDEPENDENT AUDIT REPORT
Print

TO THE SHAREHOLDERS OF INSURANCE AUSTRALIA GROUP LIMITED
Scope
The financial report and directors’ responsibility
The concise financial report comprises the statement of financial performance, statement of financial position, statement of cash flows, accompanying notes 1 to 11, the disclosures made in accordance with the Corporations Regulations 2001 as required by AASB 1046 “Director and Executive Disclosures by Disclosing Entities” in sections 2, 3 (excluding sub-section 3.2), 4 and 5 of the “Remuneration report” in the Directors’ report and the accompanying discussion and analysis on the statement of financial performance, statement of financial position, and statement of cash flows for Insurance Australia Group Limited (“the Company”) and its controlled entities (the “Consolidated Entity”) for the year ended 30 June 2005.

The directors of the Company are responsible for the preparation of the concise financial report in accordance with Australian Accounting Standard AASB 1039 “Concise Financial Reports”. 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 concise financial report.

Audit approach
We conducted an independent audit in order to express an opinion to the shareholders of the Company. Our audit was conducted in accordance with Australian Auditing Standards in order to provide reasonable assurance as to whether the concise 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 have also performed an independent audit of the full financial report including the disclosures made in accordance with the Corporations Regulations 2001 as required by AASB 1046 “Director and Executive Disclosures by Disclosing Entities” in sections 2, 3 (excluding sub-section 3.2), 4 and 5 of the “Remuneration report” in the Directors’ report (“remuneration disclosures”) of the Consolidated Entity for the year ended 30 June 2005. The Remuneration report also contains information in section 1 and sub-section 3.2 not required by Accounting Standard AASB 1046 “Director and Executive Disclosures by Disclosing Entities”, which is not subject to our audit. Our audit report on the full financial report was signed on 19 August 2005, and was not subject to any qualification.

We performed procedures in respect of the audit of the concise financial report to assess whether, in all material respects, the concise financial report is presented fairly in accordance with Australian Accounting Standard AASB 1039 “Concise Financial Reports”.

We formed our audit opinion on the basis of these procedures, which included:

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.

Audit opinion
In our opinion, the concise financial report of Insurance Australia Group Limited and its controlled entities for the year ended 30 June 2005 complies with Australian Accounting Standard AASB 1039 “Concise Financial Reports”.

KPMG

Dr Andries B Terblanché
Partner
Sydney, 19th August 2005