Proctor and Gamble 2005 Annual Report Download - page 27
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Please find page 27 of the 2005 Proctor and Gamble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Management’sDiscussionandAnalysis TheProcter&GambleCompanyandSubsidiaries 23
ReportofIndependentRegisteredPublicAccountingFirm
TheProcter&GambleCompanyandSubsidiaries
Managementisresponsibleforestablishingandmaintainingadequate
internalcontroloverfinancialreportingofTheProcter&Gamble
Company(asdefinedinRule13a-15(f)undertheSecuritiesExchange
Actof1934,asamended).Ourinternalcontroloverfinancialreporting
isdesignedtoprovidereasonableassuranceregardingthereliability
offinancialreportingandthepreparationoffinancialstatementsfor
externalpurposesinaccordancewithgenerallyacceptedaccounting
principlesintheUnitedStatesofAmerica.
Weexpecteachemployeetobeaccountableforensuringstrong
internalcontrols.ThisobjectiveisreinforcedthroughourWorldwide
BusinessConductManual,whichsetsforthourcommitmentto
conductbusinesswithintegrityandwithinboththeletterandthespirit
ofthelaw.Ourinternalcontrolsystem,whichissupportedwithwritten
policiesandprocedures,containsaControlSelfAssessmentProgram
conductedannuallybysubstantiallyallareasoftheCompanyandis
auditedbytheinternalauditfunction.Appropriateactionsaretakenby
managementtocorrectanyidentifiedcontroldeficiencies.
Becauseofitsinherentlimitations,anysystemofinternalcontrolover
financialreporting,nomatterhowwelldesigned,maynotprevent
ordetectmisstatementsduetothepossibilitythatacontrolcanbe
circumventedoroverriddenorthatmisstatementsduetoerroror
Management’sReportonInternalControloverFinancialReporting
fraudmayoccurthatarenotdetected.Also,becauseofchangesin
conditions,internalcontroleffectivenessmayvaryovertime.
ManagementassessedtheeffectivenessoftheCompany’sinternal
controloverfinancialreportingasofJune30,2005usingcriteria
establishedin
InternalControl-IntegratedFramework
issuedbythe
CommitteeofSponsoringOrganizationsoftheTreadwayCommission
(COSO)andconcludedthattheCompanymaintainedeffective
internalcontroloverfinancialreportingasofJune30,2005basedon
thesecriteria.
OurinternalcontroloverfinancialreportingasofJune30,2005,as
wellasourassessmentoftheeffectivenessofourinternalcontrolover
financialreportingasofJune30,2005,havebeenauditedbyDeloitte
&ToucheLLP,anindependentregisteredpublicaccountingfirm,as
statedinthereportwhichisincludedherein.
A.G.LafleyClaytonC.Daley,Jr.
ChairmanoftheBoard,ChiefFinancialOfficer
PresidentandChiefExecutive
August9,2005
TotheBoardofDirectorsandShareholdersof
TheProcter&GambleCompany
Wehaveauditedtheaccompanyingconsolidatedbalancesheetsof
TheProcter&GambleCompanyandsubsidiaries(the“Company”)as
ofJune30,2005and2004,andtherelatedconsolidatedstatements
ofearnings,shareholders’equityandcashflowsforeachofthethree
yearsintheperiodendedJune30,2005.Thesefinancialstatements
aretheresponsibilityoftheCompany’smanagement.Ourresponsibility
istoexpressanopiniononthesefinancialstatementsbasedon
ouraudits.
Weconductedourauditsinaccordancewiththestandardsofthe
PublicCompanyAccountingOversightBoard(UnitedStates).Those
standardsrequirethatweplanandperformtheaudittoobtain
reasonableassuranceaboutwhetherthefinancialstatementsare
freeofmaterialmisstatement.Anauditincludesexamining,onatest
basis,evidencesupportingtheamountsanddisclosuresinthefinancial
statements.Anauditalsoincludesassessingtheaccountingprinciples
usedandsignificantestimatesmadebymanagement,aswellas
evaluatingtheoverallfinancialstatementpresentation.Webelievethat
ourauditsprovideareasonablebasisforouropinion.
Inouropinion,suchconsolidatedfinancialstatementspresentfairly,
inallmaterialrespects,thefinancialpositionoftheCompanyatJune
30,2005and2004,andtheresultsofitsoperationsandcashflows
foreachofthethreeyearsintheperiodendedJune30,2005,in
conformitywithaccountingprinciplesgenerallyacceptedintheUnited
StatesofAmerica.
Wehavealsoaudited,inaccordancewiththestandardsofthePublic
CompanyAccountingOversightBoard(UnitedStates),theeffectiveness
oftheCompany’sinternalcontroloverfinancialreportingasofJune30,
2005,basedonthecriteriaestablishedinInternalControl—Integrated
FrameworkissuedbytheCommitteeofSponsoringOrganizations
oftheTreadwayCommissionandourreportdatedAugust9,2005
expressedanunqualifiedopiniononmanagement’sassessmentofthe
effectivenessoftheCompany’sinternalcontroloverfinancialreporting
andanunqualifiedopinionontheeffectivenessoftheCompany’s
internalcontroloverfinancialreporting.
Cincinnati,Ohio August9,2005