Newsletter

Assurance statement from Deloitte

Independent assurance statement by Deloitte LLP ('Deloitte') to PepsiCo International Limited on selected information included in the PepsiCo UK ('PUK') Health Report 2010.

What we looked at: scope of assurance work

PepsiCo International Limited have engaged us to perform limited assurance procedures on selected health and wellness performance data for the year ended 31 December 2008. The assured data appears on pages 38 to 40 in the 'Health Report 2010' (the'Report') at www.pepsico.co.uk/health and are indicated by the + symbol.

What we did: assurance process and standards

Engagement assurance standards

We conducted our work in accordance with the International Standard on Assurance Engagements 3000 (ISAE 3000) issued by the International Auditing and Assurance Standards Board (IAASB) for carrying out assurance engagements on non-financial information.

This is a limited assurance* engagement, which is designed to give a similar level of assurance to that obtained in a review of interim financial information.

Assurance procedures

The ISAE 3000 standard requires that we review the systems, processes and controls that deliver the selected performance data.

Our work consisted primarily of making inquiries of company personnel and carrying out analytical procedures and sample tests as follows:

  • understanding, analysing and testing on a sample basis the collation, validation and reporting of the selected performance data by PUK in accordance with their definitions and basis for calculation which can be found at www.pepsico.co.uk/health; and
  • reading and analysing the content of the Report against the findings of our work, industry practices and other relevant information and, as necessary, making recommendations for improvement.

The limited assurance* procedures engagement excludes procedures such as testing of source data and operating effectiveness of controls and is substantially less in scope than a reasonable assurance* engagement. Accordingly we do not provide reasonable assurance on those matters specified in this statement.

What we found: our conclusions

Based on the work we performed, we are not aware of anything that causes us to believe that the performance data indicated by the + symbol on pages 38 to 40 is materially misstated.

Responsibilities of Directors and independent assurance provider

PUK's responsibilities

  • The directors are responsible for the preparation of the Health Report 2010 and for the information and statements contained within it. They are responsible for determining PUK's objectives in respect of health performance and for establishing and maintaining appropriate performance management and internal control systems from which the reported information is derived.

Deloitte's responsibilities and independence

  • Our responsibility is to independently express a conclusion on the selected performance data on pages 38 to 40 indicated by the + symbol as defined within the scope of work above.
  • We complied with Deloitte's independence policies, which address and, in certain areas, exceed the requirements of the International Federation of Accountants Code of Ethics for Professional Accountants. We have confirmed to PUK that we have maintained our independence and objectivity throughout the year, and in particular that there were no events or prohibited services provided which could impair our independence and objectivity in the provision of this engagement.
  • This statement is made solely to PepsiCo International Limited in accordance with our letter of engagement for the purpose of the directors' governance and stewardship. Our work has been undertaken so that we might state to PUK those matters we are required to state to them in this statement and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than PepsiCo International Limited for our work, for this statement, or for the conclusions we have formed.

Deloitte LLP

London, 6th November 2009

* The levels of assurance engagement are defined in ISAE 3000. A reasonable level of assurance is similar to the audit of financial statements; a limited level of assurance is similar to the review of a six-monthly interim financial report.