Canon 2005 Annual Report Download - page 88

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86
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Stockholders of
Canon Inc.
We have audited the accompanying consolidated balance sheets of Canon Inc. and subsidiaries (the “Company”) as of
December 31, 2005 and 2004, and the related consolidated statements of income, stockholders’ equity, and cash flows
for each of the two years in the period ended December 31, 2005, all expressed in Japanese yen. 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. The consolidated statements of income, stockholders’ equity, and cash flows
of Canon Inc. and subsidiaries for the year ended December 31, 2003 were audited by other auditors whose report
dated January 28, 2004 expressed a qualified opinion on those statements with respect to the omission of segment
information required by U.S. generally accepted accounting principles.
We conducted our audits 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. We were not engaged to perform an audit of the Company’s
internal control over financial reporting. Our audits included consideration of internal control over financial reporting as
a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no
such opinion. An audit also 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.
The Company’s consolidated financial statements do not disclose segment information required by Statement of
Financial Accounting Standards No. 131, “Disclosures about Segments of an Enterprise and Related Information.” In
our opinion, disclosure of segment information is required by U.S. generally accepted accounting principles.
In our opinion, except for the omission of segment information as discussed in the preceding paragraph, the 2005 and
2004 financial statements referred to above present fairly, in all material respects, the consolidated financial position of
Canon Inc. and subsidiaries at December 31, 2005 and 2004, and the consolidated results of their operations and their
cash flows for each of the two years in the period ended December 31, 2005 in conformity with U.S. generally accepted
accounting principles.
We have also recomputed the translation of the consolidated financial statements as of and for the year ended
December 31, 2005 into United States dollars. In our opinion, the consolidated financial statements expressed in
Japanese yen have been translated into United States dollars on the basis described in Note 2.
January 26, 2006