Pfizer 2005 Annual Report Download - page 35

34 2005 Financial Report
To the Board of Directors and Shareholders of Pfizer Inc:
We have audited the accompanying consolidated balance sheets
of Pfizer Inc and Subsidiary Companies as of December 31, 2005
and 2004, and the related consolidated statements of income,
shareholders’ equity, and cash flows for each of the years in the
three-year period ended December 31, 2005. These consolidated
financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
We conducted our audits in accordance with the standards of the
Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to
above present fairly, in all material respects, the financial position
of Pfizer Inc and Subsidiary Companies as of December 31, 2005
and 2004, and the results of their operations and their cash flows
for each of the years in the three-year period ended December
31, 2005, in conformity with U.S. generally accepted accounting
principles.
We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the
effectiveness of Pfizer Inc and Subsidiary Companies’ internal
control over financial reporting as of December 31, 2005, based
on criteria established in Internal Control—Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO), and our report dated February 24,
2006 expressed an unqualified opinion on management’s
assessment of, and the effective operation of, internal control over
financial reporting.
KPMG LLP
New York, NY
February 24, 2006
To the Board of Directors and Shareholders of Pfizer Inc:
We have audited management’s assessment, included in the
accompanying Management’s Report on Internal Control Over
Financial Reporting, that Pfizer Inc and Subsidiary Companies
maintained effective internal control over financial reporting as
of December 31, 2005, based on criteria established in Internal
Control—Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Pfizer Inc and Subsidiary Companies’ management is responsible
for maintaining effective internal control over financial reporting
and for its assessment of the effectiveness of internal control
over financial reporting. Our responsibility is to express an opinion
on management’s assessment and an opinion on the effectiveness
of the Company’s internal control over financial reporting based
on our audit.
We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal
control over financial reporting was maintained in all material
respects. Our audit included obtaining an understanding of
internal control over financial reporting, evaluating management’s
assessment, testing and evaluating the design and operating
effectiveness of internal control, and 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 financial reporting 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. A company’s internal control over financial
reporting includes those policies and procedures that (i) pertain
to the maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the assets
of the company; (ii) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial
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 (iii) provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial
reporting 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.
In our opinion, management’s assessment that Pfizer Inc and
Subsidiary Companies maintained effective internal control over
financial reporting as of December 31, 2005, is fairly stated, in all
material respects, based on criteria established in Internal
Control—Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Also, in our opinion, Pfizer Inc and Subsidiary Companies
maintained, in all material respects, effective internal control
over financial reporting as of December 31, 2005, based on criteria
established in Internal Control—Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO).
We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the
consolidated balance sheets of Pfizer Inc and Subsidiary Companies
as of December 31, 2005 and 2004, and the related consolidated
statements of income, shareholders’ equity, and cash flows for
each of the years in the three-year period ended December 31,
2005, and our report dated February 24, 2006 expressed an
unqualified opinion on those consolidated financial statements.
KPMG LLP
New York, NY
February 24, 2006
Report of Independent Registered
Public Accounting Firm on the
Consolidated Financial Statements
Report of Independent Registered
Public Accounting Firm on
Internal Control Over Financial Reporting