HR Block 2006 Annual Report Download - page 110

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MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING –
Management is responsible for establishing and maintaining adequate Based on our assessment, management concluded that, as of April 30,
internal control over financial reporting, as such term is defined in 2006, the Company’s internal control over financial reporting was
Exchange Act Rules 13a-15(f). Under the supervision and with the effective based on the criteria set forth by COSO. The Company’s
participation of management, including our Chief Executive Officer and external auditors, KPMG, LLP, an independent registered public
Chief Financial Officer, we conducted an evaluation of the effectiveness accounting firm, have issued an audit report on our assessment of the
of our internal control over financial reporting based on the framework Company’s internal control over financial reporting.
in ‘‘Internal Control – Integrated Framework’’ issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO) as of
April 30, 2006.
Mark A. Ernst William L. Trubeck
Chairman of the Board, President and Chief Executive Officer Executive Vice President and Chief Financial Officer
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM –
The Board of Directors and Stockholders of H&R Block, Inc.: H&R Block, Inc. and its subsidiaries as of April 30, 2006 and 2005, and
We have audited the accompanying consolidated balance sheets of the results of their operations and their cash flows for each of the years
H&R Block, Inc. and its subsidiaries (the Company) as of April 30, 2006 in the three-year period ended April 30, 2006, in conformity with
and 2005, and the related consolidated statements of income and U.S. generally accepted accounting principles.
comprehensive income, stockholders’ equity, and cash flows for each of As discussed in Note 1 to the consolidated financial statements, the
the years in the three-year period ended April 30, 2006. These Company changed its method of accounting to adopt Emerging Issues
consolidated financial statements are the responsibility of the Task Force Issue No. 00-21, ‘‘Revenue Arrangements with Multiple
Company’s management. Our responsibility is to express an opinion on Deliverables,’’ during the year ended April 30, 2004.
these consolidated financial statements based on our audits. We also have audited, in accordance with the standards of the Public
We conducted our audits in accordance with the standards of the Company Accounting Oversight Board (United States), the effectiveness
Public Company Accounting Oversight Board (United States). Those of the Company’s internal control over financial reporting as of April 30,
standards require that we plan and perform the audit to obtain 2006, based on criteria established in Internal Control – Integrated
reasonable assurance about whether the financial statements are free of Framework issued by the Committee of Sponsoring Organizations of
material misstatement. An audit includes examining, on a test basis, the Treadway Commission (COSO), and our report dated June 29, 2006
evidence supporting the amounts and disclosures in the financial expressed an unqualified opinion on management’s assessment of, and
statements. An audit also includes assessing the accounting principles the effective operation of, internal control over financial reporting.
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to Kansas City, Missouri
above present fairly, in all material respects, the financial position of June 29, 2006
40
H&R BLOCK 2006 Form 10K