Blizzard 2009 Annual Report Download - page 43
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REPORTOFINDEPENDENTREGISTEREDPUBLICACCOUNTINGFIRM
TotheBoardofDirectorsandShareholdersofActivisionBlizzard,Inc.:
Inouropinion,theaccompanyingconsolidatedbalancesheetsandtherelatedconsolidated
statementsofoperations,changesinshareholders’equityandcashflows,presentfairly,inallmaterial
respects,thefinancialpositionofActivisionBlizzard,Inc.anditssubsidiariesatDecember31,2009and
2008,andtheresultsoftheiroperationsandtheircashflowsfortheyearsthenendedinconformitywith
accountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.Alsoinouropinion,the
Companymaintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasof
December31,2009,basedoncriteriaestablishedinInternalControl—IntegratedFrameworkissuedbythe
CommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).TheCompany’s
managementisresponsibleforthesefinancialstatements,formaintainingeffectiveinternalcontrolover
financialreportingandforitsassessmentoftheeffectivenessofinternalcontroloverfinancialreporting,
includedinManagement’sReportonInternalControlOverFinancialReportingappearinginthisAnnual
Report.Ourresponsibilityistoexpressopinionsonthesefinancialstatements,andontheCompany’s
internalcontroloverfinancialreportingbasedonourintegratedaudits.Weconductedourauditsin
accordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates).Those
standardsrequirethatweplanandperformtheauditstoobtainreasonableassuranceaboutwhetherthe
financialstatementsarefreeofmaterialmisstatementandwhethereffectiveinternalcontroloverfinancial
reportingwasmaintainedinallmaterialrespects.Ourauditsofthefinancialstatementsincluded
examining,onatestbasis,evidencesupportingtheamountsanddisclosuresinthefinancialstatements,
assessingtheaccountingprinciplesusedandsignificantestimatesmadebymanagement,andevaluatingthe
overallfinancialstatementpresentation.Ourauditofinternalcontroloverfinancialreportingincluded
obtaininganunderstandingofinternalcontroloverfinancialreporting,assessingtheriskthatamaterial
weaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbased
ontheassessedrisk.Ourauditsalsoincludedperformingsuchotherproceduresasweconsiderednecessary
inthecircumstances.Webelievethatourauditsprovideareasonablebasisforouropinions.
Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonable
assuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsfor
externalpurposesinaccordancewithgenerallyacceptedaccountingprinciples.Acompany’sinternal
controloverfinancialreportingincludesthosepoliciesandproceduresthat(i)pertaintothemaintenanceof
recordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassets
ofthecompany;(ii)providereasonableassurancethattransactionsarerecordedasnecessarytopermit
preparationoffinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples,andthat
receiptsandexpendituresofthecompanyarebeingmadeonlyinaccordancewithauthorizationsof
managementanddirectorsofthecompany;and(iii)providereasonableassuranceregardingpreventionor
timelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcouldhavea
materialeffectonthefinancialstatements.
Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventor
detectmisstatements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjectto
theriskthatcontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeof
compliancewiththepoliciesorproceduresmaydeteriorate.
LosAngeles,California
March1,2010