Pizza Hut 2007 Annual Report Download - page 50

54 YUM! BRANDS, INC.
Report of Independent Registered
Public Accounting Firm
The Board of Directors and Shareholders
YUM! Brands, Inc.:
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, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on
the assessed risk. Our audit also included 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 (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) 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 (3) 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 misstate-
ments. 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, YUM maintained, in all material respects, effective internal control over financial reporting as
of December 29, 2007, based on criteria established in Internal Control—Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), the consolidated balance sheets of YUM as of December 29, 2007 and December 30, 2006, and
the related consolidated statements of income, cash flows and shareholders’ equity and comprehensive income
for each of the years in the three-year period ended December 29, 2007, and our report dated February 25, 2008,
expressed an unqualified opinion on those consolidated financial statements.
KPMG LLP
Louisville, Kentucky
February 25, 2008
We have audited the internal control over financial reporting of YUM! Brands, Inc. and Subsidiaries (“YUM”) as
of December 29, 2007, based on criteria established in Internal Control—Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission. YUM’s management is responsible for main-
taining effective internal control over financial reporting and for its assessment of the effectiveness of internal
control over financial reporting, included in “Management’s Report on Internal Control over Financial Reporting”
appearing on page 56 of the Company’s Annual Report. Our responsibility is to express an opinion on YUM’s internal
control over financial reporting based on our audit.