Cardinal Health 2010 Annual Report Download - page 108

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R
EP
O
RT
O
F INDEPENDENT RE
G
I
S
TERED P
U
BLI
C
A
CCOU
NTIN
G
FIRM
To the
S
hareholders and the
Board o
f
D
i
rectors o
fC
ard
i
nal Health, Inc
.
W
e have audited Cardinal Health, Inc. and subsidiaries’ (the “Company”) internal control over financial
r
eporting as of June 30, 2010, based on criteria established in Internal Control—Integrated Framework issued b
y
the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Company’
s
management is responsible for maintaining effective internal control over financial reporting, and for its
assessment of the effectiveness of internal control over financial reporting included in the accompanyin
g
“Management’s Report on Internal Control Over Financial Reporting.” Our responsibility is to express an
o
pinion on the company’s internal control over financial reporting based on our audit
.
W
e conducted our audit in accordance with the standards of the Public Company Accounting Oversight Boar
d
(United States). Those standards re
q
uire that we
p
lan and
p
erform the audit to obtain reasonable assurance about
whether effective internal control over financial reporting was maintained in all material respects. Our audit
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on th
e
assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believ
e
that our audit
p
rovides a reasonable basis for our o
p
inion
.
A company’s internal control over financial reporting is a process designed to provide reasonable assuranc
e
r
egarding the reliability of financial reporting and the preparation of financial statements for external purposes i
n
accordance with generally accepted accounting principles. A company’s internal control over financial reportin
g
includes those
p
olicies and
p
rocedures that (1)
p
ertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
o
nly in accordance with authorizations of management and directors of the company; and (3) provide reasonabl
e
assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the
company’s assets that could have a material effect on the financial statements
.
B
ecause 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
p
olicies or procedures may deteriorate.
In our opinion, the Company maintained, in all material respects, effective internal control over financia
l
r
eporting as of June 30, 2010, based on the COSO criteria
.
W
e also have audited, in accordance with the standards of the Public Company Accounting Oversight Boar
d
(United States), the consolidated balance sheets of Cardinal Health, Inc. and subsidiaries as of June 30, 2010 and
2009, and the related consolidated statements of earnings, shareholders’ equity, and cash flows for each of th
e
three years in the period ended June 30, 2010 and our report dated August 26, 2010 expressed unqualified
op
inion thereon
.
/
s
/
Ernst
&
Young LLP
Ernst
&
Young LLP
Columbus, Ohi
o
August 26, 201
0
82