Pizza Hut 2013 Annual Report Download - page 133

YUM! BRANDS, INC.-2013 Form10-K 37
Form 10-K
PART II
ITEM 8Financial Statements andSupplementaryData
Report of Independent Registered Public
AccountingFirm
The Board of Directors and Shareholders
YUM! Brands, Inc.
We have audited the accompanying consolidated balance sheets of
YUM! Brands, Inc. and Subsidiaries (YUM) as of December 28, 2013 and
December 29, 2012, and the related consolidated statements of income,
comprehensive income, shareholders’ equity, and cash flows for each of
the fiscal years in the three-year period ended December 28, 2013. We
also have audited YUM’s internal control over financial reporting as of
December 28, 2013, based on criteria established in Internal Control–
Integrated Framework (1992) issued by the Committee of Sponsoring
Organizations of the Treadway Commission. YUM’s management is
responsible for these consolidated financial statements, for maintaining
effective internal control over financial reporting, and for its assessment
of the effectiveness of internal control over financial reporting, included in
the accompanying Item 9A, “Management’s Report on Internal Control
over Financial Reporting”. Our responsibility is to express an opinion on
these consolidated financial statements and an opinion on YUM’s internal
control over financial reporting 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 audits to obtain reasonable assurance
about whether the financial statements are free of material misstatement
and whether effective internal control over financial reporting was maintained
in all material respects. Our audits of the consolidated financial statements
included examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the
overall financial statement presentation. Our audit of internal control over
financial reporting 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 audits also included performing
such other procedures as we considered necessary in the circumstances.
We believe that our audits provide a reasonable basis for our opinions.
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 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, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of YUM as
of December 28, 2013 and December 29, 2012, and the results of its
operations and its cash flows for each of the fiscal years in the three-year
period ended December 28, 2013, in conformity with U.S. generally
accepted accounting principles. Also in our opinion, YUM maintained, in
all material respects, effective internal control over financial reporting as
of December 28, 2013, based on criteria established in Internal Control–
Integrated Framework (1992) issued by the Committee of Sponsoring
Organizations of the Treadway Commission.
/s/ KPMG LLP
Louisville, Kentucky
February 18, 2014