Estee Lauder 2005 Annual Report Download - page 85

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THE EST{E LAUDER COMPANIES INC.
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management of The Estée Lauder Companies Inc. (including its subsidiaries) (the “Company”) is responsible for establishing
and maintaining adequate internal control over financial reporting (as defined in Rules13a-15(f) of the Securities Exchange
Act of 1934, as amended).
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
U.S. 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 U.S. 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.
Under the supervision of and with the participation of the Chief Executive Officer and the Chief Financial Officer, the
Company’s management conducted an assessment of the effectiveness of the Company’s internal control over financial
reporting based on the framework and criteria established in Internal Control — Integrated Framework, issued by the
Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, the Company’s management
has concluded that, as of June 30, 2005, the Company’s internal control over financial reporting was effective.
KPMG LLP, the independent registered public accounting firm that audits the Company’s consolidated financial statements
has issued its attestation report on management’s assessment of internal control over financial reporting. That attestation
report follows this report.
William P. Lauder Richard W. Kunes
President and Chief Executive Officer Executive Vice President and Chief Financial Officer
August 23, 2005
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