Eli Lilly 2008 Annual Report Download - page 69

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FINANCIALS
67
Report of Independent Registered Public Accounting Firm
Board of Directors and Shareholders
Eli Lilly and Company
We have audited Eli Lilly and Company and subsidiaries’ internal control over fi nancial reporting as of Decem-
ber 31, 2008, based on criteria established in Internal Control—Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (the COSO criteria). Eli Lilly and Company and subsidiaries’
management is responsible for maintaining effective internal control over fi nancial reporting and for its assess-
ment of the effectiveness of internal control over fi nancial reporting included in the accompanying Management’s
Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the company’s
internal control over fi nancial 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 fi nancial reporting was maintained in all material respects. Our audit
included obtaining an understanding of internal control over fi nancial reporting, assessing the risk that a mate-
rial weakness exists, testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk, 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 fi nancial reporting is a process designed to provide reasonable assurance
regarding the reliability of fi nancial reporting and the preparation of fi nancial statements for external purposes
in accordance with generally accepted accounting principles. A company’s internal control over fi nancial report-
ing includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly refl ect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of fi 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 (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 fi nancial statements.
Because of its inherent limitations, internal control over fi nancial reporting may not prevent or detect misstate-
ments. 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 proce-
dures may deteriorate.
In our opinion, Eli Lilly and Company and subsidiaries maintained, in all material respects, effective internal
control over fi nancial reporting as of December 31, 2008, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), the 2008 consolidated fi nancial statements of Eli Lilly and Company and subsidiaries and our
report dated February 16, 2009, expressed an unqualifi ed opinion thereon.
Indianapolis, Indiana
February 16, 2009