Pizza Hut 2006 Annual Report Download - page 47

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52 YUM! BRANDS, INC.
Management’s Responsibility for Financial Statements
To Our Shareholders:
We are responsible for the preparation, integrity and fair presentation of the Consolidated Financial Statements,
related notes and other information included in this annual report. The financial 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 disposi-
tion. The system is supported 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. We have
conducted an evaluation of the effectiveness of our internal control over financial reporting based on the frame-
work in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on our evaluation, we concluded that our internal control over financial reporting
was effective as of December 30, 2006. Our internal audit function monitors and reports on the adequacy
of and compliance with the internal control system, 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 meet-
ings of the Board of Directors and Committees of the Board. We believe that management representations
made to the independent auditors were valid and appropriate. Additionally, our assessment of the effectiveness
of our internal control over financial reporting has been audited and reported on by KPMG LLP.
The Audit Committee of the Board of Directors, which is composed solely of outside directors, provides over-
sight to our financial reporting process and our controls to safeguard assets through periodic meetings with our
independent auditors, internal 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 preclude all errors and irregularities, we believe our
controls as of December 30, 2006 provide reasonable assurance that our assets are reasonably safeguarded.
Richard T. Carucci
Chief Financial Officer