Vistaprint 2012 Annual Report Download - page 87

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83
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial
reporting for the company. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f)
promulgated under the Exchange Act as a process designed by, or under the supervision of, the company’s
principal executive and principal financial officers and effected by the company’s supervisory board, management
and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting
principles and includes those policies and procedures that:
• Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions
and dispositions of the assets of the company;
• Provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial 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
• Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Projections 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.
In accordance with SEC guidelines regarding the evaluation of internal control of entities subject to a
business combination, we have excluded Albumprinter Holding B.V. and its subsidiaries and Webs, Inc. from our
assessment of internal control over financial reporting as of June 30, 2012. As previously announced, we acquired
these entities on October 31, 2011 and December 28, 2011, respectively. The results of these acquisitions are
included in our 2012 consolidated financial statements and represent approximately $30.5 million and $10.1 million
of total and net assets, respectively, as of June 30, 2012 and $45.1 million and ($5.0) million of revenues and net
income, respectively, for the year then ended.
Our management assessed the effectiveness of our internal control over financial reporting as of June 30,
2012. In making this assessment, our management used the criteria set forth in the Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Based on our assessment, management concluded that, as of June 30, 2012, our internal control over
financial reporting is effective based on those criteria.
Our independent auditors have issued an audit report on internal control over financial reporting. This report
appears on the following page.
Form 10-K