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096
KIA MOTORS 2006 Annual Report
To the President of
Kia Motors Corporation:
We have reviewed the accompanying Report on the Operations of Internal Accounting Control System (“IACS”) of Kia Motors Corporation (the “Company”) as of
December 31, 2006. The Company’s management is responsible for designing and maintaining effective IACS and for its assessment of the effectiveness of IACS.
Our responsibility is to review management’s assessment and issue a report based on our review. In the accompanying report of management’s assessment of
IACS, the Company’s management stated: “Based on the assessment on the operations of the IACS, the Company’s IACS has been effectively designed and is
operating as of December 31, 2006, in all material respects, in accordance with the IACS Framework issued by the Internal Accounting Control System Operation
Committee”
We conducted our review in accordance with IACS Review Standards, issued by the Korean Institute of Certified Public Accountants. Those Standards require that
we plan and perform the review to obtain assurance of a level less than that of an audit as to whether Report on the Operations of Internal Accounting Control
System is free of material misstatement. Our review consists principally of obtaining an understanding of the Company’s IACS, inquiries of company personnel
about the details of the report, and tracing to related documents we considered necessary in the circumstances. We have not performed an audit and, accordingly,
we do not express an audit opinion.
A company’s IACS is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, however, IACS may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness 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.
Based on our review, nothing has come to our attention that Report on the Operations of Internal Accounting Control System as of December 31, 2006 is not
prepared in all material respects, in accordance with IACS Framework issued by the Internal Accounting Control System Operation Committee.
This report applies to the Company’s IACS in existence as of December 31, 2006. We did not review the Company’s IACS subsequent to December 31, 2006. This
report has been prepared for Korean regulatory purposes, pursuant to the External Audit Law, and may not be appropriate for other purposes or for other users.
January 31, 2007
∷Notice to Readers
This report is annexed in relation to the audit of the non-consolidated financial statements as of December 31, 2006 and the review of internal
accounting control system pursuant to Article 2-3 of the Act on External Audit for Stock Companies of the Republic of Korea.
English Translation of a Report Originally
Issued in Korean
Independent Accountants’ Review Report on
Internal Accounting Control System