Estee Lauder 2007 Annual Report Download - page 90

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The Board of Directors and Stockholders
The Estée Lauder Companies Inc.:
We have audited the accompanying consolidated balance sheets of The Estée Lauder Companies Inc. and subsidiaries as
of June 30, 2007 and 2006, and the related consolidated statements of earnings, stockholders’ equity and comprehensive
income, and cash fl ows for each of the years in the three-year period ended June 30, 2007. These consolidated fi nancial
statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these
consolidated fi nancial statements based on our audits.
We conducted our audits 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 the
fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used
and signifi cant estimates made by management, as well as evaluating the overall fi nancial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated fi nancial statements referred to above present fairly, in all material respects, the fi nancial
position of The Estée Lauder Companies Inc. and subsidiaries as of June 30, 2007 and 2006, and the results of their
operations and their cash fl ows for each of the years in the three-year period ended June 30, 2007, in conformity with
U.S. generally accepted accounting principles.
As discussed in the notes to the consolidated fi nancial statements, effective July 1, 2005, the Company adopted Statement
of Financial Accounting Standard No. 123(R), “Share-Based Payment.” Also, as discussed in the notes to the consolidated
fi nancial statements, effective July 1, 2006, the Company changed their method for quantifying errors based on SEC Staff
Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements
in Current Year Financial Statements,” and effective June 30, 2007, the Company adopted Statement of Financial
Accounting Standard No. 158, “Employers’ Accounting for Defi ned Benefi t Pension and Other Post Retirement Plans —
An Amendment of FASB Statements No. 87, 88, 106, and 132(R).”
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), the effectiveness of The Estée Lauder Companies Inc.’s internal control over fi nancial reporting as of
June 30, 2007, based on criteria established in Internal Control — Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated August 27, 2007 expressed
an unqualified opinion on management’s assessment of, and the effective operation of, internal control over
fi nancial reporting.
New York, New York
August 27, 2007
THE EST{E LAUDER COMPANIES INC. 89
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM