Eli Lilly 2006 Annual Report Download - page 56

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FINANCIALS
54
Report of Independent Registered Public Accounting Firm
Board of Directors and Shareholders
Eli Lilly and Company
We have audited the accompanying consolidated balance sheets of Eli Lilly and Company and subsidiaries as of
December 31, 2006 and 2005, and the related consolidated statements of income, cash fl ows, and comprehensive
income for each of the three years in the period ended December 31, 2006. These fi nancial statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on these fi nancial state-
ments 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 fi nancial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the
accounting principles used and signifi cant estimates made by management, as well as evaluating the overall fi nan-
cial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the fi nancial statements referred to above present fairly, in all material respects, the consoli-
dated fi nancial position of Eli Lilly and Company and subsidiaries at December 31, 2006 and 2005, and the consoli-
dated results of their operations and their cash fl ows for each of the three years in the period ended December 31,
2006, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), the effectiveness of Eli Lilly and Company and subsidiaries’ internal control over fi nancial report-
ing as of December 31, 2006, based on criteria established in Internal Control-Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 9, 2007
expressed an unqualifi ed opinion thereon.
As discussed in Notes 2 and 7 to the fi nancial statements, in 2005 Eli Lilly and Company and subsidiaries
adopted new accounting pronouncements for asset retirement obligations and stock-based compensation. As
discussed in Note 12 to the fi nancial statements, in 2006 Eli Lilly and Company and subsidiaries adopted a new ac-
counting pronouncement for defi ned benefi t pension and other postretirement plans.
Indianapolis, Indiana
February 9, 2007