Pizza Hut 2001 Annual Report Download - page 67

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65
Management’s Responsibility
for Financial Statements
Report of Independent
Auditors
TO OUR SHAREHOLDERS:
We are responsible for the preparation, integrity and fair pres-
entation of the Consolidated Financial Statements, related notes
and other information included in this annual report. The finan-
cial statements were prepared in accordance with accounting
principles generally accepted in the United States of America
and include certain amounts based upon our estimates and
assumptions, as required. Other financial information presented
in the annual report is derived from the financial statements.
We maintain a system of internal control over financial
reporting, designed to provide reasonable assurance as to the
reliability of the financial statements, as well as to safeguard
assets from unauthorized use or disposition. The system is sup-
ported by formal policies and procedures, including an active
Code of Conduct program intended to ensure employees
adhere to the highest standards of personal and professional
integrity. Our internal audit function monitors and reports on
the adequacy of and compliance with the internal control sys-
tem, and appropriate actions are taken to address significant
control deficiencies and other opportunities for improving the
system as they are identified.
The Consolidated Financial Statements have been audited
and reported on by our independent auditors, KPMG LLP, who
were given free access to all financial records and related data,
including minutes of the meetings of the Board of Directors
and Committees of the Board. We believe that management
representations made to the independent auditors were valid
and appropriate.
The Audit Committee of the Board of Directors, which is
composed solely of outside directors, provides oversight to our
financial reporting process and our controls to safeguard assets
through periodic meetings with our independent auditors, inter-
nal auditors and management. Both our independent auditors
and internal auditors have free access to the Audit Committee.
Although no cost-effective internal control system will pre-
clude all errors and irregularities, we believe our controls as of
December 29, 2001 provide reasonable assurance that our
assets are reasonably safeguarded.
David J. Deno
Chief Financial Officer
THE BOARD OF DIRECTORS
TRICON GLOBAL RESTAURANTS, INC.:
We have audited the accompanying consolidated balance sheets
of TRICON Global Restaurants, Inc. and Subsidiaries (“TRICON”)
as of December 29, 2001 and December 30, 2000, and the
related consolidated statements of income, cash flows and
shareholders’ equity (deficit) and comprehensive income for
each of the years in the three-year period ended December 29,
2001. These consolidated financial statements are the respon-
sibility of TRICON’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 auditing stan-
dards 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 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 state-
ment 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 TRICON as of December 29, 2001 and
December 30, 2000, and the results of its operations and its
cash flows for each of the years in the three-year period ended
December 29, 2001, in conformity with accounting principles
generally accepted in the United States of America.
KPMG LLP
Louisville, Kentucky
February 7, 2002, except as to Note 12
which is as of February 22, 2002