Statutory auditor’s report on the Consolidated Financial Statements
This is a free translation into English of the statutory auditors’ report on the Consolidated Financial Statements issued in French and it is provided solely for the convenience of English-speaking users.
The statutory auditors’ report includes information specifically required by French law in such reports, whether modified or not.
This information is presented below the audit opinion on the Consolidated Financial Statements and includes an explanatory paragraph discussing the auditors’ assessments of certain significant accounting and auditing matters. These assessments were considered for the purpose of issuing an audit opinion on the Consolidated Financial Statements taken as a whole and not to provide separate assurance on individual account balances, transactions or disclosures.
This report also includes information relating to the specific verification of information given in the Group’s Management Report. This report should be read in conjunction with and construed in accordance with French law and professional auditing standards applicable in France.
Year ended December 31, 2014
To the Shareholders,
In compliance with the assignment entrusted to us by your general annual meeting, we hereby report to you, for the year ended December 31, 2014, on:
- the audit of the accompanying Consolidated Financial Statements of TOTAL S.A.;
- the justification of our assessments;
- the specific verification required by law.
These Consolidated Financial Statements have been approved by the Board of Directors. Our role is to express an opinion on these Consolidated Financial Statements based on our audit.
I. Opinion on the Consolidated Financial Statements
We conducted our audit in accordance with professional standards applicable in France; those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Consolidated Financial Statements are free of material misstatement. An audit involves performing procedures, using sampling techniques or other methods of selection, to obtain audit evidence about the amounts and disclosures in the Consolidated Financial Statements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made, as well as the overall presentation of the Consolidated Financial Statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the Consolidated Financial Statements give a true and fair view of the assets and liabilities and of the financial position of the group as at December 31, 2014 and of the results of its operations for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union.
Without qualifying our opinion, we draw your attention to the matter set out in note “Introduction” to the Consolidated Financial Statements which sets out the accounting consequences resulting from the mandatory application of IAS 19 revised “Employee Benefits”.
II. Justification of our assessments
In accordance with the requirements of Article L. 823-9 of the French commercial code (Code de commerce) relating to the justification of our assessments, we bring to your attention the following matters:
As stated in note “Introduction” to the Consolidated Financial Statements, some accounting principles applied by TOTAL S.A. involve a significant amount of assumptions and estimates. Management reviews these estimates and assumptions on an ongoing basis, by reference to past experience and various other factors considered as reasonable which form the basis for assessing the carrying amount of assets and liabilities. However, actual results may differ significantly from these estimates, if different assumptions or circumstances apply. These assumptions and estimates relate principally to the application of the successful efforts method for the oil and gas activities, the depreciation of long-lived assets, the provisions for asset retirement obligations and environmental remediation, the pensions and post-retirements benefits and the income tax computation. Detailed information relating to the application of these accounting principles is given in the notes to the Consolidated Financial Statements.
In order to assess the reasonableness of management’s estimates, we performed audit procedures, using sampling techniques, that entailed the review of the assumptions and calculations on which the estimates are based, the comparison of prior years’ actual results to their related estimates and the review of management’s process for approving the estimates. Additionally, the notes to the financial statements were reviewed to ensure that appropriate information regarding the estimates used by management had been disclosed.
These assessments were made as part of our audit of the Consolidated Financial Statements taken as a whole, and therefore contributed to the opinion we formed which is expressed in the first part of this report.
III. Specific verification
As required by law we have also verified, in accordance with professional standards applicable in France, the information related to the group, presented in the Management Report.
We have no matters to report as to its fair presentation and its consistency with the Consolidated Financial Statements.
Paris-La Défense, March 2, 2015
The statutory auditors
French original signed by
ERNST & YOUNG Audit