Proctor and Gamble 2005 Annual Report Download - page 28
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Please find page 28 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’sDiscussionandAnalysisTheProcter&GambleCompanyandSubsidiaries
24
ReportofIndependentRegisteredPublicAccountingFirm
TotheBoardofDirectorsandShareholdersof
TheProcter&GambleCompany
Wehaveauditedmanagement’sassessment,includedinManagement’s
ReportonInternalControlOverFinancialReporting,thatTheProcter
&GambleCompanyandsubsidiaries(the“Company”)maintained
effectiveinternalcontroloverfinancialreportingasofJune30,
2005,basedoncriteriaestablishedin
InternalControl–Integrated
Framework
issuedbytheCommitteeofSponsoringOrganizationsofthe
TreadwayCommission.TheCompany’smanagementisresponsiblefor
maintainingeffectiveinternalcontroloverfinancialreportingandfor
itsassessmentoftheeffectivenessofinternalcontroloverfinancial
reporting.Ourresponsibilityistoexpressanopiniononmanagement’s
assessmentandanopinionontheeffectivenessoftheCompany’s
internalcontroloverfinancialreportingbasedonouraudit.
Weconductedourauditinaccordancewiththestandardsofthe
PublicCompanyAccountingOversightBoard(UnitedStates).Those
standardsrequirethatweplanandperformtheaudittoobtain
reasonableassuranceaboutwhethereffectiveinternalcontrolover
financialreportingwasmaintainedinallmaterialrespects.Ouraudit
includedobtaininganunderstandingofinternalcontroloverfinancial
reporting,evaluatingmanagement’sassessment,testingandevaluating
thedesignandoperatingeffectivenessofinternalcontrol,and
performingsuchotherproceduresasweconsiderednecessaryinthe
circumstances.Webelievethatourauditprovidesareasonablebasis
forouropinions.
Acompany’sinternalcontroloverfinancialreportingisaprocess
designedby,orunderthesupervisionof,thecompany’sprincipal
executiveandprincipalfinancialofficers,orpersonsperformingsimilar
functions,andeffectedbythecompany’sboardofdirectors,management,
andotherpersonneltoprovidereasonableassuranceregardingthe
reliabilityoffinancialreportingandthepreparationoffinancial
statementsforexternalpurposesinaccordancewithgenerallyaccepted
accountingprinciples.Acompany’sinternalcontroloverfinancial
reportingincludesthosepoliciesandproceduresthat(1)pertaintothe
maintenanceofrecordsthat,inreasonabledetail,accuratelyandfairly
reflectthetransactionsanddispositionsoftheassetsofthecompany;
(2)providereasonableassurancethattransactionsarerecordedas
necessarytopermitpreparationoffinancialstatementsinaccordance
withgenerallyacceptedaccountingprinciples,andthatreceiptsand
expendituresofthecompanyarebeingmadeonlyinaccordancewith
authorizationsofmanagementanddirectorsofthecompany;and(3)
providereasonableassuranceregardingpreventionortimelydetection
ofunauthorizedacquisition,use,ordispositionofthecompany’sassets
thatcouldhaveamaterialeffectonthefinancialstatements.
Becauseoftheinherentlimitationsofinternalcontroloverfinancial
reporting,includingthepossibilityofcollusionorimpropermanagement
overrideofcontrols,materialmisstatementsduetoerrororfraudmay
notbepreventedordetectedonatimelybasis.Also,projectionsofany
evaluationoftheeffectivenessoftheinternalcontroloverfinancial
reportingtofutureperiodsaresubjecttotheriskthatthecontrols
maybecomeinadequatebecauseofchangesinconditions,orthatthe
degreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
In our opinion,management’sassessment thatthe Company
maintainedeffectiveinternalcontroloverfinancialreportingasofJune
30,2005,isfairlystated,inallmaterialrespects,basedonthecriteria
establishedin
InternalControl–IntegratedFramework
issuedbythe
CommitteeofSponsoringOrganizationsoftheTreadwayCommission.Also
inouropinion,theCompanymaintained,inallmaterialrespects,effective
internalcontroloverfinancialreportingasofJune30,2005,basedonthe
criteriaestablishedin
InternalControl–IntegratedFramework
issuedbythe
CommitteeofSponsoringOrganizationsoftheTreadwayCommission.
Wehavealsoaudited,inaccordancewiththestandardsofthePublic
CompanyAccountingOversightBoard(UnitedStates),theconsolidated
financialstatementsasofandfortheyearendedJune30,2005of
theCompanyandourreportdatedAugust9,2005expressedan
unqualifiedopiniononthosefinancialstatements.
Cincinnati,Ohio August9,2005