Qualcomm 2006 Annual Report Download - page 68

54 qualcomm 2006
Report of Independent Registered Public Accounting Firm
control over nancial reporting and for its assessment of
the effectiveness of internal control over nancial reporting.
Our responsibility is to express opinions on management’s assess-
ment and on the effectiveness of the Company’s internal control
over nancial reporting based on our audit. We conducted our
audit of internal control over nancial reporting in accordance with
the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether effective
internal control over nancial reporting was maintained in all
material respects. An audit of internal control over nancial
reporting includes obtaining an understanding of internal control
over nancial reporting, evaluating management’s assessment,
testing and evaluating the design and operating effectiveness of
internal control, and performing such other procedures as we con-
sider necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinions.
A company’s internal control over nancial reporting is a process
designed to provide reasonable assurance regarding the reliability
of nancial reporting and the preparation of nancial statements
for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over nancial
reporting includes those policies and procedures that (i) pertain
to the maintenance of records that, in reasonable detail, accurately
and fairly reect the transactions and dispositions of the assets
of the company; (ii) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of nancial
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 (iii) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisi-
tion, use, or disposition of the company’s assets that could have a
material effect on the nancial statements.
Because of its inherent limitations, internal control over nancial
reporting may not prevent or detect misstatements. Also, projec-
tions 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.
PricewaterhouseCoopers LLP
San Diego, California
November 2, 2006
to the board oF directors and stockholders oF
qualcomm incorPorated:
We have completed integrated audits of QUALCOMM Incorporated’s
consolidated financial statements and of its internal control
over nancial reporting as of September 24, 2006 in accordance
with the standards of the Public Company Accounting Oversight
Board (United States). Our opinions, based on our audits,
are presented below.
Consolidated Financial Statements
In our opinion, the accompanying consolidated balance sheets and
the related consolidated statements of operations, stockholders’
equity, and cash ows present fairly, in all material respects, the
nancial position of QUALCOMM Incorporated and its subsidiaries
(the Company) at September 24, 2006 and September 25, 2005,
and the results of their operations and their cash ows for each of
the three years in the period ended September 24, 2006 in confor-
mity with accounting principles generally accepted in the United
States of America. These nancial statements are the responsibility
of the Company’s management. Our responsibility is to express
an opinion on these nancial statements based on our audits.
We conducted our audits of these statements in accordance with
the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the nancial
statements are free of material misstatement. An audit of nancial
statements includes examining, on a test basis, evidence supporting
the amounts and disclosures in the nancial statements, assessing
the accounting principles used and signicant estimates made
by management, and evaluating the overall nancial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.
As discussed in Note 1 to the consolidated nancial statements,
the Company changed the manner in which it accounts for share-
based compensation in scal 2006.
Internal Control Over Financial Reporting
Also, in our opinion, management’s assessment, included in
Management’s Report on Internal Control Over Financial Reporting,
that the Company maintained effective internal control over nancial
reporting as of September 24, 2006 based on criteria established
in Internal Control—Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO),
is fairly stated, in all material respects, based on those criteria.
Furthermore, in our opinion, the Company maintained, in all mate-
rial respects, effective internal control over nancial reporting as
of September 24, 2006, based on criteria established in Internal
Control—Integrated Framework issued by the COSO. The Company’s
management is responsible for maintaining effective internal