Financial Review

Auditors’ Report

Report of the independent auditors Buzzacott to the Trustees of
ActionAid International

We have audited the aggregated non-statutory accounts of ActionAid International (which comprise ActionAid International (AAI), ActionAid (including ActionAid Hellas), ActionAid USA, ActionAid Brasil, ActionAid International Italia, ActionAid Ireland and ActionAid Sweden) for the year ended 31 December 2006. These aggregated non-statutory accounts comprise the aggregated income statement and statement of movement in funds, aggregated balance sheet, aggregated cash flow statement, the accounting policies and related notes 1 – 17, and have been prepared for international publication purposes.

This report has been prepared for ActionAid International’s trustees, as a body, solely in connection with their wish to publish aggregated non-statutory audited accounts and in accordance with the terms of our engagement. Our work has been undertaken so that we might state to the trustees those matters that we are required to state to them in this report, and for no other purpose. We acknowledge that the trustees wish to make this report (with the aggregated non-statutory accounts to which it relates) available for public inspection, to enable readers to verify that an auditor's report has been commissioned by the trustees and issued in connection with the associated aggregated non-statutory accounts.

This report was designed to meet the agreed requirements of ActionAid International’s trustees, as a body, determined by the needs of ActionAid International at the time. This report should not therefore be regarded as suitable to be used or relied on by any party wishing to acquire rights against us other than ActionAid International’s trustees, as a body, or ActionAid International, for any purpose or in any context. Any party other than ActionAid International’s trustees, as a body, or ActionAid International who obtains access to this report or a copy and chooses to rely on this report (or any part of it) will do so at its own risk. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than ActionAid International and ActionAid International’s trustees, as a body, for our work, for this report or for the opinions we have formed.

Respective responsibilities of trustees and auditors

As described in the section Governance, internal control and audit the trustees of ActionAid International have accepted responsibility for the preparation of these aggregated non-statutory accounts in accordance with International Financial Reporting Standards.

Our responsibility is to audit the aggregated non-statutory accounts in accordance with the terms of our engagement letter dated 23 January 2007 and International Standards on Auditing (UK and Ireland).

Under the terms of engagement we are required to report to you our opinion as to whether the aggregated non-statutory accounts give a true and fair view. We also report to you if, in our opinion, we have not received all the information and explanations we require for our audit.

We read the other information accompanying the aggregated non-statutory accounts and consider whether it is consistent with them. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the non-statutory accounts.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the aggregated non-statutory accounts. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the aggregated non-statutory accounts, and of whether the accounting policies are appropriate to ActionAid International’s circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the aggregated non-statutory accounts are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the aggregated non-statutory accounts.

Opinion

In our opinion the aggregated non-statutory accounts give a true and fair view, in accordance with International Financial Reporting Standards as adopted by the European Union, of the state of affairs of ActionAid International’s non-statutory aggregation as at 31 December 2006 and of its income and expenditure, for the year then ended.

Buzzacott
Chartered Accountants 16 July 2007