Emerson 2004 Annual Report Download - page 21

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integrity
The Company’s management is responsible for the integrity and accuracy of the financial
statements. Management believes that the financial statements for the three years ended
September 30, 2004, have been prepared in conformity with U.S. generally accepted accounting
principles appropriate in the circumstances. In preparing the financial statements, management
makes informed judgments and estimates where necessary to reflect the expected effects of
events and transactions that have not been completed. The Company’s disclosure controls and
procedures ensure that material information required to be disclosed is recorded, processed,
summarized and communicated to management and reported within the required time periods.
In meeting its responsibility for the reliability of the financial statements, management relies
on a system of internal accounting control. This system is designed to provide reasonable
assurance that assets are safeguarded and transactions are executed in accordance with
management’s authorization and recorded properly to permit the preparation of financial
statements in accordance with U.S. generally accepted accounting principles. The design of
this system recognizes that errors or irregularities may occur and that estimates and judgments
are required to assess the relative cost and expected benefits of the controls. Management
believes that the Company’s accounting controls provide reasonable assurance that errors
or irregularities that could be material to the financial statements are prevented or would be
detected within a timely period.
The Audit Committee of the Board of Directors, which is composed solely of independent
Directors, is responsible for overseeing the Company’s financial reporting process. The Audit
Committee meets with management and the internal auditors periodically to review the work
of each and to monitor the discharge by each of its responsibilities. The Audit Committee also
meets periodically with the independent auditors who have free access to the Audit Committee
and the Board of Directors to discuss the quality and acceptability of the Company’s financial
reporting, internal controls, as well as non-audit-related services.
The independent auditors are engaged to express an opinion on the Company’s consolidated
financial statements. Their opinion is based on procedures which they believe to be sufficient to
provide reasonable assurance that the financial statements contain no material errors.
David N. Farr Walter J. Galvin
Chairman of the Board Senior Executive Vice President
and Chief Executive Officer and Chief Financial Officer
Report of Management