Cardinal Health 2012 Annual Report Download - page 48

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Cardinal Health, Inc. and Subsidiaries
Report of Management on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate
internal control over financial reporting as defined in Rule 13a-15(f) under
the Exchange Act. Our internal control system is designed to provide
reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. Because of its
inherent limitations, internal control over financial reporting may not
prevent or detect misstatements. Also controls deemed effective now may
become inadequate in the future because of changes in conditions, or
because compliance with the policies or procedures has deteriorated or
been circumvented.
Management assessed the effectiveness of our internal control over
financial reporting as of June 30, 2012. In making this assessment,
management used the criteria established in Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (the “COSO criteria”). Based on management’s
assessment and the COSO criteria, management believes that our internal
control over financial reporting was effective as of June 30, 2012.
Our independent registered public accounting firm, Ernst & Young LLP,
has issued a report on our internal control over financial reporting. Ernst &
Young LLP’s report appears below and expresses an unqualified opinion
on the effectiveness of our internal control over financial reporting.
Report of Independent Registered Public Accounting Firm
The Board of Directors and Shareholders of Cardinal Health, Inc.
We have audited Cardinal Health, Inc. and subsidiaries' internal control
over financial reporting as of June 30, 2012, based on criteria established
in Internal Control-Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (the COSO
criteria). Cardinal Health, Inc. and subsidiaries' 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 accompanying “Management's
Report on Internal Control Over Financial Reporting.” Our responsibility
is to express an opinion on the company's internal control over financial
reporting based on our audit.
We conducted our audit 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 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 the assessed risk,
and performing such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable basis for
our opinion.
A company's internal control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. A company's
internal control over financial reporting includes those policies and
procedures that (1) pertain 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 only in accordance with authorizations of management
and directors of the company; and (3) provide reasonable 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.
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 risk that
controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may
deteriorate.
In our opinion, Cardinal Health, Inc. and subsidiaries maintained, in all
material respects, effective internal control over financial reporting as of
June 30, 2012, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the consolidated
balance sheets of Cardinal Health, Inc. and subsidiaries as of June 30,
2012 and 2011 and the related consolidated statements of earnings,
shareholders' equity and cash flows for each of the three years in the
period ended June 30, 2012 of Cardinal Health, Inc. and subsidiaries and
our report dated August 22, 2012 expressed an unqualified opinion
thereon.
Columbus, Ohio
August 22, 2012