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16 Cisco Systems, Inc.
Reports of Management
John T. Chambers
President and Chief Executive Ofcer
September 15, 2006
Dennis D. Powell
Senior Vice President and Chief Financial Ofcer
September 15, 2006
Statement of Management’s Responsibility
Cisco’s management has always assumed full accountability for maintaining compliance with our established nancial accounting policies
and for reporting our results with objectivity and the highest degree of integrity. It is critical for investors and other users of the Consolidated
Financial Statements to have condence that the nancial information that we provide is timely, complete, relevant, and accurate. Management
is responsible for the fair presentation of Cisco’s Consolidated Financial Statements, prepared in accordance with generally accepted
accounting principles (GAAP), and has full responsibility for their integrity and accuracy.
Management, with oversight by Cisco’s Board of Directors, has established and maintains a strong ethical climate so that our affairs
are conducted to the highest standards of personal and corporate conduct. Management also has established an effective system of
internal control over nancial reporting. Cisco’s policies and practices reect corporate governance initiatives that are compliant with the
listing requirements of NASDAQ and the corporate governance requirements of the Sarbanes-Oxley Act of 2002.
We are committed to enhancing shareholder value and fully understand and embrace our duciary oversight responsibilities. We
are dedicated to ensuring that our high standards of nancial accounting and reporting as well as our underlying system of internal controls
are maintained. Our culture demands integrity and we have the highest condence in our processes, our internal controls, and our people,
who are objective in their responsibilities and who operate under the highest level of ethical standards.
Management’s Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over nancial reporting for Cisco. Internal control
over nancial reporting is a process designed to provide reasonable assurance regarding the reliability of nancial reporting and the
preparation of nancial statements for external purposes in accordance with generally accepted accounting principles. Internal control over
nancial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that in reasonable detail accurately
and fairly reect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of nancial 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 (iii) 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 nancial statements.
Because of its inherent limitations, internal control over nancial 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.
Management (with the participation of the principal executive ofcer and principal nancial ofcer) conducted an evaluation of the
effectiveness of Cisco’s internal control over nancial reporting based on the framework in Internal Control—Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that
Cisco’s internal control over nancial reporting was effective as of July 29, 2006. Management’s assessment of the effectiveness of Cisco’s
internal control over nancial reporting as of July 29, 2006 has been audited by PricewaterhouseCoopers LLP, an independent registered
public accounting rm, as stated in their report which is included herein.