Pizza Hut 2014 Annual Report Download - page 131

PART II
ITEM 8 Financial Statements and Supplementary Data
Report of Independent Registered Public
Accounting Firm
The Board of Directors and Shareholders A company’s internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of
YUM! Brands, Inc. financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting
We have audited the accompanying consolidated balance sheets of
principles. A company’s internal control over financial reporting
YUM! Brands, Inc. and Subsidiaries (YUM) as of December 27, 2014
includes those policies and procedures that (1) pertain to the
and December 28, 2013, and the related consolidated statements of
maintenance of records that, in reasonable detail, accurately and fairly
income, comprehensive income, shareholders’ equity, and cash flows
reflect the transactions and dispositions of the assets of the company;
for each of the fiscal years in the three-year period ended
(2) provide reasonable assurance that transactions are recorded as
December 27, 2014. We also have audited YUM’s internal control
necessary to permit preparation of financial statements in accordance
over financial reporting as of December 27, 2014, based on criteria
with generally accepted accounting principles, and that receipts and
established in Internal Control – Integrated Framework (2013) issued
expenditures of the company are being made only in accordance with
by the Committee of Sponsoring Organizations of the Treadway
authorizations of management and directors of the company; and
Commission. YUM’s management is responsible for these
(3) provide reasonable assurance regarding prevention or timely
consolidated financial statements, for maintaining effective internal
detection of unauthorized acquisition, use, or disposition of the
control over financial reporting, and for its assessment of the
company’s assets that could have a material effect on the financial
effectiveness of internal control over financial reporting, included in
statements.
the accompanying Item 9A, ‘‘Management’s Report on Internal
Control over Financial Reporting.’’ Our responsibility is to express an Because of its inherent limitations, internal control over financial
opinion on these consolidated financial statements and an opinion on reporting may not prevent or detect misstatements. Also, projections
YUM’s internal control over financial reporting based on our audits. of any evaluation of effectiveness to future periods are subject to the
risk that controls may become inadequate because of changes in
We conducted our audits in accordance with the standards of the
conditions, or that the degree of compliance with the policies or
Public Company Accounting Oversight Board (United States). Those
procedures may deteriorate.
standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free In our opinion, the consolidated financial statements referred to above
of material misstatement and whether effective internal control over present fairly, in all material respects, the financial position of YUM as
financial reporting was maintained in all material respects. Our audits of December 27, 2014 and December 28, 2013, and the results of its
of the consolidated financial statements included examining, on a test operations and its cash flows for each of the fiscal years in the
basis, evidence supporting the amounts and disclosures in the three-year period ended December 27, 2014, in conformity with U.S.
financial statements, assessing the accounting principles used and generally accepted accounting principles. Also in our opinion, YUM
significant estimates made by management, and evaluating the maintained, in all material respects, effective internal control over
overall financial statement presentation. Our audit of internal control financial reporting as of December 27, 2014, based on criteria
over financial reporting included obtaining an understanding of established in Internal Control – Integrated Framework (2013) issued
internal control over financial reporting, assessing the risk that a by the Committee of Sponsoring Organizations of the Treadway
material weakness exists, and testing and evaluating the design and Commission.
operating effectiveness of internal control based on the assessed risk.
Our audits also included performing such other procedures as we /s/ KPMG LLP
considered necessary in the circumstances. We believe that our Louisville, Kentucky
audits provide a reasonable basis for our opinions. February 17, 2015
YUM! BRANDS, INC. - 2014 Form 10-K 37
13MAR201516053226
Form 10-K