Emerson 2013 Annual Report Download - page 20

18 Emerson > 2013 Annual Report
Report of Management
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, 2013 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 internal
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 Company’s 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 and internal controls, as well as
nonaudit-related services.
The independent auditors are engaged to express
an opinion on the Company’s consolidated financial
statements and on the Company’s internal control over
financial reporting. Their opinions are based on procedures
that they believe to be sufficient to provide reasonable
assurance that the financial statements contain no
material errors and that the Company’s internal controls
are effective.
Management’s Report on Internal
Control Over Financial Reporting
The Company’s management is responsible for establishing
and maintaining adequate internal control over financial
reporting for the Company. With the participation of the
Chief Executive Officer and the Chief Financial Officer,
management conducted an evaluation of the effectiveness
of internal control over financial reporting based on the
framework and the criteria established in Internal Control -
Integrated Framework (1992), issued by the Committee of
Sponsoring Organizations of the Treadway Commission.
Based on this evaluation, management has concluded that
internal control over financial reporting was effective as of
September 30, 2013.
The Company’s auditor, KPMG LLP, an independent
registered public accounting firm, has issued an audit
report on the effectiveness of the Company’s internal
control over financial reporting.
Frank J. Dellaquila
Executive Vice President
and Chief Financial Officer
David N. Farr
Chairman of the Board
and Chief Executive Officer
FINANCIAL REVIEW