Freeport-McMoRan 2004 Annual Report Download - page 51
Download and view the complete annual report
Please find page 51 of the 2004 Freeport-McMoRan annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.2004 ANNUAL REPORT |49
To The Stockholders and Board of Directors
of Freeport-McMoRan Copper and Gold Inc.:
Wehaveauditedmanagement’sassessment,includedinthe
accompanyingManagement’sReportonInternalControlOver
FinancialReporting,thatFreeport-McMoRanCopper&Gold
Inc.anditssubsidiariesmaintainedeffectiveinternalcontrol
overfinancialreportingasofDecember31,2004,basedon
criteriaestablishedinInternalControl-IntegratedFramework
issuedbytheCommitteeofSponsoringOrganizationsof
theTreadwayCommission(COSO).Freeport-McMoRanCopper
&GoldInc.’smanagementisresponsibleformaintaining
effectiveinternalcontroloverfinancialreportingand
foritsassessmentoftheeffectivenessofinternalcontrol
overfinancialreporting.Ourresponsibilityistoexpress
anopiniononmanagement’sassessmentandanopinionon
theeffectivenessofthecompany’sinternalcontrolover
financialreportingbasedonouraudit.
Weconductedourauditinaccordancewiththestandards
ofthePublicCompanyAccountingOversightBoard(United
States).Thosestandardsrequirethatweplanandperform
theaudittoobtainreasonableassuranceaboutwhether
effectiveinternalcontroloverfinancialreportingwasmain-
tainedinallmaterialrespects.Ourauditincludedobtaining
anunderstandingofinternalcontroloverfinancialreporting,
evaluatingmanagement’sassessment,testingandevaluating
thedesignandoperatingeffectivenessofinternalcontrol,
andperformingsuchotherproceduresasweconsidered
necessaryinthecircumstances.Webelievethatouraudit
providesareasonablebasisforouropinion.
Acompany’sinternalcontroloverfinancialreportingis
aprocessdesignedtoprovidereasonableassuranceregarding
thereliabilityoffinancialreportingandthepreparationof
financialstatementsforexternalpurposesinaccordance
withgenerallyacceptedaccountingprinciples.Acompany’s
internalcontroloverfinancialreportingincludesthose
policiesandproceduresthat(1)pertaintothemaintenance
ofrecordsthat,inreasonabledetail,accuratelyandfairly
reflectthetransactionsanddispositionsoftheassetsofthe
company;(2)providereasonableassurancethattransactions
arerecordedasnecessarytopermitpreparationoffinancial
statementsinaccordancewithgenerallyacceptedaccounting
principles,andthatreceiptsandexpendituresofthe
companyarebeingmadeonlyinaccordancewithauthoriza-
tionsofmanagementanddirectorsofthecompany;and
(3)providereasonableassuranceregardingpreventionor
timelydetectionofunauthorizedacquisition,use,ordispo-
sitionofthecompany’sassetsthatcouldhaveamaterial
effectonthefinancialstatements.
Becauseofitsinherentlimitations,internalcontrolover
financialreportingmaynotpreventordetectmisstatements.
Also,projectionsofanyevaluationofeffectivenesstofuture
periodsaresubjecttotheriskthatcontrolsmaybeinade-
quatebecauseofchangesinconditions,orthatthedegreeof
compliancewiththepoliciesorproceduresmaydeteriorate.
Inouropinion,management’sassessmentthatFreeport-
McMoRanCopper&GoldInc.anditssubsidiariesmaintained
effectiveinternalcontroloverfinancialreportingasof
December31,2004,isfairlystated,inallmaterialrespects,
basedontheCOSOcriteria.Also,inouropinion,Freeport-
McMoRanCopper&GoldInc.anditssubsidiariesmaintained,
inallmaterialrespects,effectiveinternalcontrolover
financialreportingasofDecember31,2004,basedonthe
COSOcriteria.
Wehavealsoaudited,inaccordancewiththestandardsof
thePublicCompanyAccountingOversightBoard(United
States),theconsolidatedbalancesheetsofFreeport-McMoRan
Copper&GoldInc.anditssubsidiariesasofDecember31,
2004and2003,andtherelatedstatementsofincome,cash
flowsandstockholders’equityforeachofthethreeyears
intheperiodendedDecember31,2004andourreportdated
March9,2005expressedanunqualifiedopinionthereon.
Ernst & Young LLP
NewOrleans,Louisiana
March9,2005
Report of Independent Registered Public Accounting Firm