Cardinal Health 2011 Annual Report Download - page 104

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REP
O
RT
O
F INDEPENDENT RE
G
I
S
TERED P
U
BLI
C
A
CCOU
NTIN
G
FIR
M
To the
S
hareholders and the
Board of Directors of Cardinal Health, Inc
.
We have audited Cardinal Health, Inc. and subsidiaries’ (the “Compan
y
”) internal control over financial
reporting as of June 30, 2011, based on criteria established in Internal Control—Integrated Framework issued b
y
t
h
e Comm
i
ttee o
f
Sponsor
i
ng Organ
i
zat
i
ons o
f
t
h
e Trea
d
way Comm
i
ss
i
on (t
h
e COSO cr
i
ter
i
a). T
h
e Company’
s
mana
g
ement is responsible for maintainin
g
effective internal control over financial reportin
g
, and for its
a
ssessment of the effectiveness of internal control over financial reporting included in the accompanyin
g
“Management’s Report on Interna
l
Contro
l
Over F
i
nanc
i
a
l
Report
i
ng.” Our respons
ibili
ty
i
s to express a
n
o
pinion on the compan
y
’s internal control over financial reportin
g
based on our audit
.
We con
d
ucte
d
our au
di
t
i
n accor
d
ance w
i
t
h
t
h
e stan
d
ar
d
so
f
t
h
ePu
bli
c Company Account
i
ng Overs
i
g
h
t Boar
d
(United States). Those standards re
q
uire that we
p
lan and
p
erform the audit to obtain reasonable assurance about
whether effective internal control over financial reporting was maintained in all material respects. Our audit
i
nc
l
u
d
e
d
o
b
ta
i
n
i
ng an un
d
erstan
di
ng o
fi
nterna
l
contro
l
over
fi
nanc
i
a
l
report
i
ng, assess
i
ng t
h
er
i
s
k
t
h
at a mater
i
a
l
weakness exists, testin
g
and evaluatin
g
the desi
g
n and operatin
g
effectiveness of internal control based on th
e
a
ssessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe
t
h
at our au
di
t prov
id
es a reasona
bl
e
b
as
i
s
f
or our op
i
n
i
on.
A company’s internal control over financial reporting is a process designed to provide reasonable assuranc
e
regar
di
ng t
h
ere
li
a
bili
ty o
ffi
nanc
i
a
l
report
i
ng an
d
t
h
e preparat
i
on o
ffi
nanc
i
a
l
statements
f
or externa
l
purposes
in
a
ccordance with
g
enerall
y
accepted accountin
g
principles. A compan
y
’s internal control over financial reportin
g
includes those
p
olicies and
p
rocedures that (1)
p
ertain to the maintenance of records that, in reasonable detail
,
a
ccurate
l
yan
df
a
i
r
l
yre
fl
ect t
h
e transact
i
ons an
ddi
spos
i
t
i
ons o
f
t
h
e assets o
f
t
h
e company; (2) prov
id
e reasona
ble
a
ssurance that transactions are recorded as necessar
y
to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being mad
e
o
n
l
y
i
n accor
d
ance w
i
t
h
aut
h
or
i
zat
i
ons o
f
management an
ddi
rectors o
f
t
h
e company; an
d
(3) prov
id
e reasona
ble
a
ssurance re
g
ardin
g
prevention or timel
y
detection of unauthorized acquisition, use, or disposition of the
company’s assets that could have a material effect on the financial statements
.
B
ecause of its inherent limitations, internal control over financial reportin
g
ma
y
not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
contro
l
s may
b
ecome
i
na
d
equate
b
ecause o
f
c
h
anges
i
n con
di
t
i
ons, or t
h
at t
h
e
d
egree o
f
comp
li
ance w
i
t
h
t
he
policies or procedures ma
y
deteriorate.
I
n our op
i
n
i
on, t
h
e Company ma
i
nta
i
ne
d
,
i
na
ll
mater
i
a
l
respects, e
ff
ect
i
ve
i
nterna
l
contro
l
over
fi
nanc
i
a
l
reportin
g
as of June 30, 2011, based on the COSO criteria.
We a
l
so
h
ave au
di
te
d
,
i
n accor
d
ance w
i
t
h
t
h
e stan
d
ar
d
so
f
t
h
ePu
bli
c Company Account
i
ng Overs
i
g
h
t Boar
d
(United States), the consolidated balance sheets of the Compan
y
as of June 30, 2011 and 2010, and the relate
d
consolidated statements of earnings, shareholders’ equity, and cash flows for each of the three years in the perio
d
ended June 30, 2011 and our report dated August 25, 2011 expressed an unqualified opinion thereon.
/
s/ Ernst & Young, LLP
Ernst
&
Young LLP
C
olumbus, Ohi
o
August 2
5
, 2011
78