26 The Procter & Gamble Company and Subsidiaries Independent Auditors’ Report To the Board of Directors and Shareholders of The Procter & Gamble Company: We have audited the accompanying consolidated balance sheet of The Procter & Gamble  Company and subsidiaries as of June 30, 2002 and 2001 and the related consolidated statements of earnings, shareholders’ equity and cash flows for each of the three years in the period ended June 30, 2002. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the  United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts  and disclosures in the financial statements. An audit also includes assessing the accounting  principles used and significant estimates made by management, as well as evaluating the  overall financial statement presentation. We believe that our audits provide a reasonable basis  for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company at June 30, 2002 and 2001 and the results of its operations and cash flows for each of the three years in the period ended June 30,  2002, in conformity with accounting principles generally accepted in the United States of America. August 5, 2002 250 East Fifth Street Cincinnati, Ohio 45202