Adaptec 2006 Annual Report Download - page 106

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Table of Contents
Management’s Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) and 15d -15(f) of
the Securities Exchange Act of 1934 as amended).
Our management assessed the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework. Based on our assessment and those criteria, management
believes that we maintained effective control over financial reporting as of December 31, 2006.
We have excluded from our assessment the internal control over financial reporting at Passave, Inc., which was acquired on May 4, 2006, and whose financial
statements constitute 3.2% and 4.0% of net and total assets, respectively, 7.2% of revenues, and 22.3% of net loss of the consolidated financial statement
amounts as of December 31, 2006.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, 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.
Deloitte and Touche LLP, the independent registered public accounting firm that audited the financial statements included in this Annual Report, has issued an
attestation report on management’s assessment of the registrant’s internal control over financial reporting. The attestation report is included herein.
Changes in Internal Controls over Financial Reporting
There were no changes in our internal controls during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.
104
Source: PMC SIERRA INC, 10-K, March 01, 2007 Powered by Morningstar® Document Research℠