Adobe 2007 Annual Report Download - page 108

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We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective
internal control over financial reporting was maintained in all material respects. Our audit included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included
performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.
A company’ s internal control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’ s internal control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that
receipts and expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’ s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
In our opinion, Adobe Systems Incorporated maintained, in all material respects, effective internal control over financial
reporting as of November 30, 2007, based on the criteria established in Internal Control—Integrated Framework issued by
COSO.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), the consolidated balance sheets of Adobe Systems Incorporated and subsidiaries as of November 30, 2007 and
December 1, 2006, and the related consolidated statements of income, stockholders’ equity and comprehensive income, and
cash flows for each of the years in the three-year period ended November 30, 2007, and our report dated January 24, 2008,
expressed an unqualified opinion on those consolidated financial statements.
/s/KPMG LLP
Mountain View, California
January 24, 2008
ITEM 9B. OTHER INFORMATION
None.
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
The information required by Item 10 of Form 10-K with respect to Item 401 of Regulation S-K regarding our directors is
incorporated herein by reference from the information contained in the section entitled “Proposal 1 – Election of Directors”
in our definitive Proxy Statement we will deliver to our stockholders in connection with our Annual Meeting of Stockholders
to be held on April 9, 2008.
The information required by Item 10 of Form 10-K with respect to Item 405 of Regulation S-K regarding section 16(a)
beneficial ownership compliance is incorporated by reference from the information contained in the section entitled “Section
16(a) Beneficial Ownership Reporting Compliance” in our definitive Proxy Statement we will deliver to our stockholders in
connection with our Annual Meeting of Stockholders to be held on April 9, 2008.