HR Block 2006 Annual Report Download - page 111

Download and view the complete annual report

Please find page 111 of the 2006 HR Block annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 155

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM –
The Board of Directors and Stockholders of H&R Block, Inc.: expenditures of the company are being made only in accordance with
We have audited management’s assessment, included in the authorizations of management and directors of the company; and
accompanying Management’s Report On Internal Control Over (3) provide reasonable assurance regarding prevention or timely
Financial Reporting (Item 9A(b)), that H&R Block, Inc. and detection of unauthorized acquisition, use, or disposition of the
subsidiaries (the Company) maintained effective internal control over company’s assets that could have a material effect on the
financial reporting as of April 30, 2006, based on criteria established in financial statements.
Internal Control – Integrated Framework issued by the Committee of Because of its inherent limitations, internal control over financial
Sponsoring Organizations of the Treadway Commission (COSO). The reporting may not prevent or detect misstatements. Also, projections of
Company’s management is responsible for maintaining effective internal any evaluation of effectiveness to future periods are subject to the risk
control over financial reporting and for its assessment of the that controls may become inadequate because of changes in conditions,
effectiveness of internal control over financial reporting. Our or that the degree of compliance with the policies or procedures
responsibility is to express an opinion on management’s assessment and may deteriorate.
an opinion on the effectiveness of the Company’s internal control over In our opinion, management’s assessment that H&R Block, Inc. and
financial reporting based on our audit. subsidiaries maintained effective internal control over financial
We conducted our audit in accordance with the standards of the reporting as of April 30, 2006, is fairly stated, in all material respects,
Public Company Accounting Oversight Board (United States). Those based on criteria established in Internal Control – Integrated
standards require that we plan and perform the audit to obtain Framework issued by the Committee of Sponsoring Organizations of
reasonable assurance about whether effective internal control over the Treadway Commission (COSO). Also, in our opinion, H&R Block,
financial reporting was maintained in all material respects. Our audit Inc. and subsidiaries maintained, in all material respects, effective
included obtaining an understanding of internal control over financial internal control over financial reporting as of April 30, 2006, based on
reporting, evaluating management’s assessment, testing and evaluating criteria established in Internal Control – Integrated Framework issued
the design and operating effectiveness of internal control, and by the Committee of Sponsoring Organizations of the Treadway
performing such other procedures as we considered necessary in the Commission (COSO).
circumstances. We believe that our audit provides a reasonable basis for We also have audited, in accordance with the standards of the Public
our opinion. Company Accounting Oversight Board (United States), the consolidated
A company’s internal control over financial reporting is a process balance sheets of H&R Block, Inc. and subsidiaries as of April 30, 2006
designed to provide reasonable assurance regarding the reliability of and 2005, and the related consolidated statements of income and
financial reporting and the preparation of financial statements for comprehensive income, stockholders’ equity, and cash flows for each of
external purposes in accordance with generally accepted accounting the years in the three-year period ended April 30, 2006, and our report
principles. A company’s internal control over financial reporting dated June 29, 2006 expressed an unqualified opinion on those
includes those policies and procedures that (1) pertain to the consolidated financial statements.
maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance Kansas City, Missouri
with generally accepted accounting principles, and that receipts and June 29, 2006
H&R BLOCK 2006 Form 10K
41