HR Block 2007 Annual Report Download - page 79

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM –
The Board of Directors and Stockholders of H&R Block, Inc.: with U.S. generally accepted accounting principles, and that receipts
We have audited management’s assessment, included in the and expenditures of the company are being made only in accordance
accompanying ‘‘Management’s Report On Internal Control Over with authorizations of management and directors of the company; and
Financial Reporting’’ (Item 9A(b)), that H&R Block, Inc. and (3) provide reasonable assurance regarding prevention or timely
subsidiaries (the Company) maintained effective internal control over detection of unauthorized acquisition, use, or disposition of the
financial reporting as of April 30, 2007, based on criteria established in company’s assets that could have a material effect on the financial
Internal Control –Integrated Framework issued by the Committee of statements.
Sponsoring Organizations of the Treadway Commission (COSO). The Because of its inherent limitations, internal control over financial
Company’s management is responsible for maintaining effective internal reporting may not prevent or detect misstatements. Also, projections of
control over financial reporting and for its assessment of the any evaluation of effectiveness to future periods are subject to the risk
effectiveness of internal control over financial reporting. Our that controls may become inadequate because of changes in conditions,
responsibility is to express an opinion on management’s assessment and or that the degree of compliance with the policies or procedures may
an opinion on the effectiveness of the Company’s internal control over deteriorate.
financial reporting based on our audit. In our opinion, management’s assessment that H&R Block, Inc. and
We conducted our audit in accordance with the standards of the subsidiaries maintained effective internal control over financial
Public Company Accounting Oversight Board (United States). Those reporting as of April 30, 2007, is fairly stated, in all material respects,
standards require that we plan and perform the audit to obtain based on criteria established inInternal Control –Integrated
reasonable assurance about whether effective internal control over Framework issued by COSO. Also, in our opinion, H&R Block, Inc. and
financial reporting was maintained in all material respects. Our audit subsidiaries maintained, in all material respects, effective internal
included obtaining an understanding of internal control over financial control over financial reporting as of April 30, 2007, based on criteria
reporting, evaluating management’s assessment, testing and evaluating established in Internal Control –Integrated Framework issued by
the design and operating effectiveness of internal control, and COSO.
performing such other procedures as we considered necessary in the We also have audited, in accordance with the standards of the Public
51 m
circumstances. We believe that our audit provides a reasonable basis for Company Accounting Oversight Board (United States), the consolidated
our opinion. balance sheets of H&R Block, Inc. and subsidiaries as of April 30, 2007
A company’s internal control over financial reporting is a process and 2006, and the related consolidated statements of income and
designed to provide reasonable assurance regarding the reliability of comprehensive income, stockholders’ equity, and cash flows for each of
financial reporting and the preparation of financial statements for the years in the three-year period ended April 30, 2007, and our report
external purposes in accordance with U.S. generally accepted dated June 29, 2007 expressed an unqualified opinion on those
accounting principles. A company’s internal control over financial consolidated financial statements.
reporting includes those policies and procedures that (1) pertain to the
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 Kansas City, Missouri
necessary to permit preparation of financial statements in accordance June 29, 2007
H&R BLOCK 2007 Form 10K