Navy Federal Credit Union 2012 Annual Report Download - page 10

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Leading with Vision. Achieving Results. 1
2012 Financial Section
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors and Supervisory Committee of Navy Federal Credit Union:
We have audited the accompanying consolidated financial statements of Navy Federal Credit Union
(the “Company”), which comprise the consolidated statements of financial condition as of December
31, 2012 and December 31, 2011, and the related consolidated statements of income, comprehensive
income, changes in reserves and undivided earnings and of cash flows for the years then ended.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to
the preparation and fair presentation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on the consolidated financial statements based on our
audits. We conducted our audits in accordance with auditing standards generally accepted in
the United States of America. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the consolidated financial statements. The procedures selected depend on our judgment, including
the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments, we consider internal control relevant
to the Company’s preparation and fair presentation of the consolidated financial statements in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the eectiveness of the Company’s internal control. Accordingly, we
express no such opinion. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the consolidated financial statements. We believe that the audit
evidence we have obtained is sucient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of Navy Federal Credit Union at December 31, 2012 and December 31,
2011, and the results of its operations and its cash flows for the years then ended in accordance with
accounting principles generally accepted in the United States of America.
March 28, 2013