Emerson 2006 Annual Report Download - page 61

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The Board of Directors and Stockholders
Emerson Electric Co.:
We have audited management’s assessment, included in the accompanying Management’s Report on Internal Control Over Financial
Reporting, that Emerson Electric Co. maintained effective internal control over nancial reporting as of September 30, 2006, based
on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Emerson Electric Co.’s management is responsible for maintaining effective internal control over nancial
reporting and for its assessment of the effectiveness of internal control over nancial reporting. Our responsibility is to express an
opinion on management’s assessment and an opinion on the effectiveness of the Company’s internal control over nancial 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
nancial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over
nancial reporting, evaluating management’s assessment, testing and evaluating the design and operating effectiveness of internal
control, 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 nancial reporting is a process designed to provide reasonable assurance regarding the reliability
of nancial reporting and the preparation of nancial statements for external purposes in accordance with U.S. generally accepted
accounting principles. A company’s internal control over nancial reporting includes those policies and procedures that (i) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly reect the transactions and dispositions of the assets of the
company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of nancial 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 (iii) 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 nancial statements.
Because of its inherent limitations, internal control over nancial reporting may not prevent or detect misstatements. Also, projec-
tions 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, management’s assessment that Emerson Electric Co. maintained effective internal control over nancial reporting as
of September 30, 2006, is fairly stated, in all material respects, based on criteria established in Internal Control – Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Also, in our opinion, Emerson Electric Co.
maintained, in all material respects, effective internal control over nancial reporting as of September 30, 2006, based on criteria
established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO).
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the
consolidated balance sheets of Emerson Electric Co. and subsidiaries as of September 30, 2006 and 2005, and the related consoli-
dated statements of earnings, stockholders’ equity, and cash ows for each of the years in the three-year period ended September 30,
2006, and our report dated November 20, 2006 expressed an unqualied opinion on those consolidated nancial statements.
St. Louis, Missouri
November 20, 2006