Cardinal Health 2014 Annual Report Download - page 52

Cardinal Health, Inc. and Subsidiaries
Report of Management on Internal Control Over Financial Reporting
50
Management is responsible for establishing and maintaining
adequate internal control over financial reporting as defined in
Rule 13a-15(f) under the Securities Exchange Act of 1934. 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, 2014. In making this
assessment, management used the criteria established in the
Internal Control-Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission
(1992 framework) (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, 2014.
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, 2014, based on
criteria established in Internal Control--Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Treadway Commission (1992 framework) (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, 2014, 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, 2014 and 2013 and the related
consolidated statements of earnings, comprehensive income,
shareholders' equity and cash flows for each of the three years
in the period ended June 30, 2014 of Cardinal Health, Inc. and
subsidiaries and our report dated August 13, 2014 expressed
an unqualified opinion thereon.
/s/ Ernst & Young LLP
Columbus, Ohio
August 13, 2014