Proctor and Gamble 2001 Annual Report Download - page 22

Consolidated financial statements and financial information included in this report are the responsibility of Company management. This
includes preparing the statements in accordance with accounting principles generally accepted in the United States of America and
necessarily includes estimates based on management’s best judgments.
To help insure the accuracy and integrity of Company financial data, management maintains internal controls designed to provide
reasonable assurance that transactions are executed as authorized and accurately recorded and that assets are properly safeguarded.
These controls are monitored by an ongoing program of internal audits. These audits are supplemented by a self-assessment program that
enables individual organizations to evaluate the effectiveness of their controls. Careful selection of employees and appropriate divisions of
responsibility are designed to achieve control objectives. The Company’s “Worldwide Business Conduct Manual” sets forth management’s
commitment to conduct its business affairs with the highest ethical standards.
Deloitte & Touche, independent auditors, have audited and reported on the Company’s consolidated financial statements. Their audits
were performed in accordance with auditing standards generally accepted in the United States of America.
The Board of Directors, acting through its Audit Committee composed entirely of outside directors, oversees the adequacy of internal
controls. The Audit Committee meets periodically with representatives of Deloitte & Touche and internal financial management to review
internal control, auditing and financial reporting matters. The independent auditors and the internal auditors also have full and free access
to meet privately with the Audit Committee.
A. G. Lafley Clayton C. Daley Jr.
President and Chief Executive Chief Financial Officer and Comptroller
Independent Auditors’ Report
To the Board of Directors and Shareholders of The Procter & Gamble Company:
We have audited the accompanying consolidated balance sheets of The Procter & Gamble Company and subsidiaries as of June 30, 2001
and 2000 and the related consolidated statements of earnings, shareholders’ equity and cash flows for each of the three years in the period
ended June 30, 2001. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards
require that we plan and perform the audits 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 statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company at
June 30, 2001 and 2000 and the results of its operations and cash flows for each of the three years in the period ended June 30, 2001, in
conformity with accounting principles generally accepted in the United States of America.
August 7, 2001
250 East Fifth Street
Cincinnati, Ohio 45202
Responsibility for the Financial Statements
20 The Procter & Gamble Company and Subsidiaries