Blizzard 2005 Annual Report Download - page 53

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CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The฀ Company’s฀ management,฀ with฀ the฀ participation฀ of฀ the฀ Company’s฀ Chief฀ Executive฀ Officers฀ and฀ Chief฀ Financial฀ Officer,฀ has฀ evaluated฀ the฀ effectiveness฀ of฀ the฀
Company’s฀disclosure฀controls฀and฀procedures฀(as฀such฀term฀is฀defined฀in฀Rules฀13a-15(e)฀and฀15d-15(e)฀under฀the฀Exchange฀Act)฀as฀of฀the฀end฀of฀the฀period฀covered฀by฀this฀
report.฀Disclosure฀controls฀and฀procedures฀are฀designed฀with฀the฀objective฀of฀ensuring฀that฀(i)฀information฀required฀to฀be฀disclosed฀in฀the฀company’s฀reports฀filed฀under฀
the฀Securities฀Exchange฀Act฀of฀1934฀is฀recorded,฀processed,฀summarized฀and฀reported฀within฀the฀time฀periods฀specified฀in฀the฀SEC’s฀rules฀and฀forms฀and฀(ii)฀information฀
is฀accumulated฀and฀communicated฀to฀management,฀including฀the฀Chief฀Executive฀Officers฀and฀Chief฀Financial฀Officer,฀as฀appropriate฀to฀allow฀timely฀decisions฀regarding฀
required฀disclosures.฀Based฀on฀this฀evaluation,฀the฀Chief฀Executive฀Officers฀and฀Chief฀Financial฀Officer฀concluded฀that,฀as฀of฀the฀end฀of฀the฀period฀covered฀by฀this฀report,฀
our฀disclosure฀controls฀and฀procedures฀are฀effective฀in฀recording,฀processing,฀summarizing,฀and฀reporting,฀on฀a฀timely฀basis,฀information฀required฀to฀฀be฀disclosed฀by฀the฀
Company฀in฀the฀reports฀that฀it฀files฀or฀submits฀under฀the฀Exchange฀Act.฀Notwithstanding฀the฀foregoing,฀a฀control฀system,฀no฀matter฀how฀well฀designed฀and฀operated,฀can฀
provide฀only฀reasonable,฀not฀absolute,฀assurance฀that฀it฀will฀detect฀or฀uncover฀failures฀within฀the฀Company฀to฀disclose฀material฀information฀otherwise฀required฀to฀be฀set฀
forth฀in฀our฀periodic฀reports.
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The฀Company’s฀management฀is฀responsible฀for฀establishing฀and฀maintaining฀adequate฀internal฀control฀over฀financial฀reporting฀as฀such฀term฀is฀defined฀in฀Rules฀13a-15(f)฀
and฀15d-15(f)฀under฀the฀ Exchange฀Act.฀Under฀the฀supervision฀and฀with฀the฀participation฀of฀the฀Company’s฀management,฀including฀our฀Chief฀Executive฀ Officers฀and฀
Chief฀ Financial฀ Officer,฀the฀ Company฀ conducted฀an฀evaluation฀ of฀ the฀ effectiveness฀ of฀ its฀ internal฀ control฀ over฀ financial฀ reporting฀ based฀ on฀ criteria฀ established฀ in฀the฀
framework฀in฀“Internal฀Control—Integrated฀Framework”฀issued฀by฀the฀Committee฀of฀Sponsoring฀Organizations฀of฀the฀Treadway฀Commission.฀Based฀on฀this฀evaluation,฀
the฀Company’s฀management฀concluded฀that฀its฀internal฀control฀over฀financial฀reporting฀was฀effective฀as฀of฀March฀31,฀2005.
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฀risks฀that฀controls฀may฀become฀inadequate฀because฀of฀changes฀in฀conditions,฀or฀that฀the฀degree฀of฀compliance฀with฀the฀policies฀and฀
procedures฀may฀deteriorate.
PricewaterhouseCoopers฀ LLP,฀ the฀ Company’s฀ independent฀ registered฀ public฀ accounting฀ firm฀ has฀ audited฀ management’s฀ assessment฀ of฀ the฀ effectiveness฀ of฀ the฀
Company’s฀internal฀control฀over฀financial฀reporting฀as฀of฀March฀31,฀2005฀as฀stated฀in฀their฀report฀included฀with฀the฀accompanying฀consolidated฀financial฀statements.
page 51
Activision, Inc. — 2005 Annual Report