Blizzard 2007 Annual Report Download - page 58

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60
A C T I V I S I O N , I N C . • • 2 0 0 7 A N N U A L R E P O R T
To the Board of Directors and Shareholders
of Activision, Inc.:
We have completed integrated audits of Activision, Inc.’s consolidated financial statements and of
its internal control over financial reporting as of March 31, 2007, 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 related consolidated statements
of operations, changes in shareholders’ equity and cash flows, present fairly, in all material respects,
the financial position of Activision, Inc. and its subsidiaries at March 31, 2007 and 2006, 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 management. 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 Over-
sight 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 1 to the consolidated financial statements the Company changed the manner
in which it accounts for share-based compensation in fiscal 2007.
Internal control over financial reporting
Also, in our opinion, management’s assessment, included in Management’s Report on Internal
Control Over Financial Reporting appearing on page 58 of the 2007 Annual Report to Shareholders,
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
Report of Independent Registered Public Accounting Firm