Toyota 2007 Annual Report Download - page 136

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134 ANNUAL REPORT 2007134 ANNUAL REPORT 2007
To the Shareholders and Board of Directors of
Toyota Jidosha Kabushiki Kaisha (“Toyota Motor Corporation”)
We have completed an integrated audit of Toyota Motor Corporation’s March 31, 2007 consolidated financial state-
ments and of its internal control over financial reporting as of March 31, 2007 and audits of its March 31, 2005 and
2006 consolidated financial statements 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 income,
shareholders’ equity and cash flows present fairly, in all material respects, the financial position of Toyota Motor
Corporation and its subsidiaries at March 31, 2006 and 2007, and the results of their operations and their cash flows
for each of the three years in the period ended March 31, 2007 in conformity with accounting principles generally
accepted in the United States of America. These financial statements are the responsibility of the Company’s man-
agement. Our responsibility is to express an opinion on these financial 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 financial statements are free of material misstatement. An audit of financial statements
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
As discussed in Note 2 to the consolidated financial statements, the Company changed the manner in which it
accounts for defined benefit pension and other postretirement plans effective March 31, 2007.
Internal control over financial reporting
Also, in our opinion, management’s assessment, included in the accompanying Management’s Annual Report on
Internal Control Over Financial Reporting, that the Company maintained effective internal control over financial
reporting as of March 31, 2007 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 material respects,
effective internal control over financial reporting as of March 31, 2007, based on criteria established in Internal
Control—Integrated Framework issued by the COSO. The Company’s management is responsible for maintaining
effective internal control over financial reporting and for its assessment of the effectiveness of internal control over
financial reporting. Our responsibility is to express opinions on management’s assessment and on the effectiveness
of the Company’s internal control over financial reporting based on our audit. We conducted our audit of internal
Report of Independent Registered Public Accounting Firm