INTL FCStone 2011 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2011 INTL FCStone 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 142

  • 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

INTL FCSTONE INC.Form10K50
PARTII
ITEM 8 Consolidated Financial Statements and Supplementary Data
ITEM 8 Consolidated Financial Statements
and Supplementary Data
Report of Independent Registered Public Accounting Firm
e Board of Directors and Stockholders
INTLFCStoneInc.:
We have audited INTLFCStoneInc.’s (the Company) internal
control over fi nancial reporting as of September30,2011, based
on criteria established in Internal Control- Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Tr e a d w a y C o m m i s s i o n ( C O S O ) . e Company’s management is
responsible for maintaining eff ective internal control over fi nancial
reporting and for its assessment of the eff ectiveness of internal
control over fi nancial reporting, included in the accompanying
Management’s Annual Report on Internal Control over Financial
Reporting. Our responsibility is to express an opinion on the
Company’s internal control over fi nancial reporting based on
our audit.
We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (UnitedStates).
ose standards require that we plan and perform the audit to
obtain reasonable assurance about whether eff ective internal
control over fi nancial reporting was maintained in all material
respects. Our audit included obtaining an understanding of
internal control over fi nancial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the design and
operating eff ectiveness of internal control based on the assessed
risk. Our audit also included performing such other procedures
as we considered necessary in the circumstances. We believe that
our audit provides a reasonable basis for our opinion.
A company’s internal control over fi nancial reporting is a process
designed to provide reasonable assurance regarding the reliability of
fi nancial reporting and the preparation of fi nancial statements for
external purposes in accordance with generally accepted accounting
principles. A company’s internal control over fi nancial reporting
includes those policies and procedures that (1)pertain to the
maintenance of records that, in reasonable detail, accurately and
fairly refl ect the transactions and dispositions of the assets of the
company; (2)provide reasonable assurance that transactions are
recorded as necessary to permit preparation of fi nancial statements
in accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made only
in accordance with authorizations of management and directors
of the company; and (3)provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use,
or disposition of the company’s assets that could have a material
eff ect on the fi nancial statements.
Because of its inherent limitations, internal control over fi nancial
reporting may not prevent or detect misstatements. Also,
projections of any evaluation of eff ectiveness to future periods
are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
In our opinion, the Company maintained, in all material
respects, eff ective internal control over fi nancial reporting as of
September30,2011, based on criteria established in Internal
Control— Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (UnitedStates),
the consolidated balance sheets of the Company and subsidiaries
as of September30,2011 and 2010, and the related consolidated
statements of income, stockholders’ equity, and cash fl ows and
the accompanying fi nancial statement schedules for each of the
years in the two-year period ended September30,2011, and
our report dated December14,2011 expressed an unqualifi ed
opinion on those consolidated fi nancial statements and the
accompanying fi nancial statement schedules.
/s/ KPMG LLP
Kansas City, Missouri
December14,2011