Canon 2007 Annual Report Download - page 98

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96
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 as of December 31, 2007 and
2006, and the related consolidated statements of income, stockholders’ equity, and cash flows for each of the three years in the
period ended December 31, 2007, 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.
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. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as 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 financial statements
referred to above present fairly, in all material respects, the consolidated financial position of Canon Inc. and subsidiaries at
December 31, 2007 and 2006, and the consolidated results of their operations and their cash flows for each of the three years in
the period ended December 31, 2007, in conformity with U.S. generally accepted accounting principles.
As discussed in Note 1 to the consolidated financial statements, in 2007 the Company changed its method of accounting for
depreciation.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),
Canon Inc.’s internal control over financial reporting as of December 31, 2007, based on criteria established in Internal
Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our
report dated March 14, 2008 expressed an unqualified opinion thereon.
We have also recomputed the translation of the consolidated financial statements as of and for the year ended December 31,
2007 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.
March 14, 2008