Kraft 2006 Annual Report Download - page 103

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evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective.
b) Changes in Internal Control Over Financial Reporting.
The Company's management evaluated, with the participation of the Company's Chief Executive Officer and Chief Financial Officer, any change in the
Company's internal control over financial reporting and determined that there has been no change in the Company's internal control over financial reporting
during the quarter ended December 31, 2006 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over
financial reporting.
However, as noted within Item 4 of the Company's quarterly report on Form 10-Q for the period ended September 30, 2006, the Company entered into a
seven-year agreement in April 2006 to receive information technology services from Electronic Data Systems ("EDS"). Pursuant to this agreement, the Company
began to transition certain of its processes and procedures into the EDS control environment during the quarter ended September 30, 2006. As the Company
migrates to the EDS environment, management ensures that key controls are mapped to applicable EDS controls, tests transition controls prior to the migration
date of those controls, and as appropriate, maintains and evaluates controls over the flow of information to and from EDS. The Company expects this transition
period to continue for three years.
See also "Report of Management on Internal Control over Financial Reporting" in Item 8.
Item 9B. Other Information.
None.
98
Source: KRAFT FOODS INC, 10-K, March 01, 2007