Emerson 2015 Annual Report Download - page 20

18 | 2015 Annual Report
Frank J. Dellaquila
Executive Vice President
and Chief Financial Officer
David N. Farr
Chairman of the Board
and Chief Executive Officer
FINANCIAL REVIEW
Report of Management
The Company’s management is responsible for the
integrity and accuracy of the financial statements.
Management believes that the financial statements for
the three years ended September 30, 2015 have been
prepared in conformity with U.S. generally accepted
accounting principles appropriate in the circumstances.
In preparing the financial statements, management
makes informed judgments and estimates where
necessary to reflect the expected effects of events
and transactions that have not been completed. The
Company’s disclosure controls and procedures ensure
that material information required to be disclosed is
recorded, processed, summarized and communicated
to management and reported within the required
time periods.
In meeting its responsibility for the reliability of
the financial statements, management relies on a
system of internal accounting control. This system is
designed to provide reasonable assurance that assets
are safeguarded and transactions are executed in
accordance with management’s authorization and
recorded properly to permit the preparation of financial
statements in accordance with U.S. generally accepted
accounting principles. The design of this system
recognizes that errors or irregularities may occur and
that estimates and judgments are required to assess
the relative cost and expected benefits of the controls.
Management believes that the Company’s internal
accounting controls provide reasonable assurance that
errors or irregularities that could be material to the
financial statements are prevented or would be detected
within a timely period.
The Audit Committee of the Board of Directors, which is
composed solely of independent directors, is responsible
for overseeing the Company’s financial reporting
process. The Audit Committee meets with management
and the Company’s internal auditors periodically to
review the work of each and to monitor the discharge
by each of its responsibilities. The Audit Committee also
meets periodically with the independent auditors, who
have free access to the Audit Committee and the Board
of Directors, to discuss the quality and acceptability of
the Company’s financial reporting and internal controls,
as well as nonaudit-related services.
The independent auditors are engaged to express
an opinion on the Company’s consolidated financial
statements and on the Company’s internal control
over financial reporting. Their opinions are based on
procedures that they believe to be sufficient to provide
reasonable assurance that the financial statements
contain no material errors and that the Company’s
internal controls are effective.
Management’s Report on Internal
Control Over Financial Reporting
The Company’s management is responsible for
establishing and maintaining adequate internal control
over financial reporting for the Company. With the
participation of the Chief Executive Officer and the Chief
Financial Officer, management conducted an evaluation
of the effectiveness of internal control over financial
reporting based on the framework and the criteria
established in Internal Control – Integrated Framework
(2013), issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based
on this evaluation, management has concluded that
internal control over financial reporting was effective as
of September 30, 2015.
The Company’s auditor, KPMG LLP, an independent
registered public accounting firm, has issued an audit
report on the effectiveness of the Company’s internal
control over financial reporting.