Canon 2008 Annual Report Download - page 99

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9
7
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Th
e
B
oa
r
d
o
f Dir
ecto
r
s
a
n
d
Stoc
kh
o
l
de
r
s
o
f
Canon Inc.
We have audited Canon Inc.’s internal control over fi nancial reporting as of December 31, 2008, based on criteria established in
Internal Control—Inte
g
rated Framework issued b
y
the Committee o
f
Sponsorin
g
Or
g
anizations o
f
the Treadwa
y
Commission (the
COSO criteria). Canon Inc.’s management is responsible
f
or maintaining e
ff
ective internal control over
fi
nancial reporting, and
f
or its
assessment of the effectiveness of internal control over fi nancial reporting included in the accompanying Management’s Report on
Internal Control over Financial Reportin
g
. Our responsibilit
y
is to express an opinion on the compan
y
’s internal control over
fi
nancial
reporting based on our audit
.
We conducted our audit in accordance with the standards o
f
the Public Compan
y
Accountin
g
Oversi
g
ht Board (United States). Those
standards require that we plan and per
f
orm the audit to obtain reasonable assurance about whether e
ff
ective internal control over
fi nancial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over
fi
nancial reportin
g
, assessin
g
the risk that a material weakness exists, testin
g
and evaluatin
g
the desi
g
n and operatin
g
e
ff
ectiveness
o
f
internal control based on the assessed risk, and per
f
orming such other procedures as we considered necessary in the circumstances.
We believe that our audit
p
rovides a reasonable basis for our o
p
inion
.
A company’s internal control over
fi
nancial reporting is a process designed to provide reasonable assurance regarding the reliability o
f
fi nancial reporting and the preparation of fi nancial statements for external purposes in accordance with generally accepted account
-
in
g
principles. A compan
y
’s internal control over
fi
nancial reportin
g
includes those policies and procedures that (1) pertain to the
maintenance o
f
records that, in reasonable detail, accurately and
f
airly re
fl
ect the transactions and dispositions o
f
the assets o
f
the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of fi nancial statements
in accordance with
g
enerall
y
accepted accountin
g
principles, and that receipts and expenditures o
f
the compan
y
are bein
g
made
only in accordance with authorizations o
f
management and directors o
f
the company; and (3) provide reasonable assurance regard-
ing prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material
e
ff
ect on the
fi
nancial statements
.
Because of its inherent limitations, internal control over fi nancial reporting may not prevent or detect misstatements. Also, projections
o
f
an
y
evaluation o
f
e
ff
ectiveness to
f
uture periods are sub
j
ect to the risk that controls ma
y
become inadequate because o
f
chan
g
es
in conditions, or that the degree o
f
compliance with the policies or procedures may deteriorate
.
In our opinion, Canon Inc. maintained, in all material respects, e
ff
ective internal control over
fi
nancial reportin
g
as o
f
December 31,
2008
,
based on the COSO criteria
.
We also have audited, in accordance with the standards o
f
the Public Compan
y
Accountin
g
Oversi
g
ht Board (United States), the
accompanying consolidated balance sheets o
f
Canon Inc. and subsidiaries as o
f
December 31, 2008 and 2007, and the related con
-
solidated statements of income, stockholders’ equity, and cash fl ows for each of the three years in the period ended December 31,
2008, all expressed in Japanese
y
en, and our report thereon dated March 16, 2009 stated that, except
f
or the omission o
f
se
g
ment
in
f
ormation required by Statement o
f
Financial Accounting Standards No. 131, “Disclosures about Segments o
f
an Enterprise and
Related Information,” the fi nancial statements referred to above present fairly, in all material respects, the consolidated fi nancial
position o
f
Canon Inc. and subsidiaries at December 31, 2008 and 2007, and the consolidated results o
f
their operations and their
cash
fl
ows
f
or each o
f
the three years in the period ended December 31, 2008, in con
f
ormity with U.S. generally accepted
accounting princip
l
es
.