Avid 2005 Annual Report Download - page 92

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78
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of
our disclosure controls and procedures as of December 31, 2005. The term “disclosure controls and procedures”, as defined in
Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to
ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls
and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed
by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s
management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding
required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can
provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the
cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures
as of December 31, 2005, our chief executive officer and chief financial officer concluded that, as of such date, the Company’s
disclosure controls and procedures were effective at the reasonable assurance level.
Management’s report on our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange
Act) and the independent registered public accounting firm’s related audit report are included in Item 8 of this Form 10-K and are
incorporated herein by reference.
Changes in Internal Control over Financial Reporting
Management considers the acquisition of Pinnacle Systems, Inc. on August 9, 2005 to be material to the results of operations,
financial position and cash flows of the Company from the date of acquisition through December 31, 2005 and considers the
internal controls and procedures of Pinnacle to have a material effect on our internal control over financial reporting. We are
currently executing an extension of our Sarbanes-Oxley Act Section 404 compliance program to include Pinnacle’s operations in
fiscal 2006.
ITEM 9B. OTHER INFORMATION
None.