Citrix 2005 Annual Report Download - page 38

Page฀36
Report฀of฀Independent฀Registered฀Public฀Accounting฀Firm
Board of Directors and Stockholders
Citrix Systems, Inc.
We have audited management’s assessment, included in the accompanying Management’s Annual Report on Internal Control
Over Financial Reporting, that Citrix Systems, Inc. maintained effective internal control over financial reporting as of December 31,
2005, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (the COSO criteria). Citrix Systems, Inc.’s management is responsible for maintain-
ing effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial
reporting. Our responsibility is to express an opinion on management’s assessment and an opinion on the effectiveness of the
company’s internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal
control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of
internal control over financial reporting, evaluating management’s assessment, testing and evaluating the design and operating
effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances. We
believe that our audit provides a reasonable basis for our opinion.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reli-
ability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispo-
sitions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expen-
ditures of the company are being made only in accordance with authorizations of management and directors of the company;
and (3) 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 financial statements.
Because of its inherent limitations, internal control over financial 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.
As indicated in the accompanying Management’s Annual Report on Internal Control over Financial Reporting, management’s
assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal con-
trols of NetScaler, Inc., which was acquired during the third quarter of 2005 and is included in the 2005 consolidated financial
statements of Citrix Systems, Inc. Net assets acquired (excluding $281.0 million of goodwill and other intangible assets recorded
in connection with the acquisition) were approximately 1% of the Company’s consolidated assets as of December 31, 2005,
and net revenues were approximately 2% of consolidated net revenues for the year ended December 31, 2005. Our audit of
internal control over financial reporting of Citrix Systems, Inc. also did not include an evaluation of the internal control over
financial reporting of NetScaler.
In our opinion, management’s assessment that Citrix Systems, Inc. maintained effective internal control over financial reporting
as of December 31, 2005, is fairly stated, in all material respects, based on the COSO criteria. Also, in our opinion, Citrix Systems,
Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2005, based on
the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),
the consolidated balance sheets of Citrix Systems, Inc. as of December 31, 2005 and 2004, and the related consolidated state-
ments of income, stockholders’ equity and comprehensive income, and cash flows for each of the three years in the period
ended December 31, 2005 and our report dated March 9, 2006 expressed an unqualified opinion thereon.
Certified Public Accountants
West Palm Beach, Florida
March 9, 2006