HR Block 2010 Annual Report Download - page 89

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
There were no disagreements or reportable events requiring disclosure pursuant to Item 304(b) of Regulation S-K.
ITEM 9A. CONTROLS AND PROCEDURES
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES – We have established disclosure controls
and procedures (Disclosure Controls) to ensure that information required to be disclosed in the Company’s reports
filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported
within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms. Disclosure
Controls are also designed to ensure that such information is accumulated and communicated to management,
including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure. Our Disclosure Controls were designed to provide reasonable assurance that the
controls and procedures would meet their objectives. Our management, including the Chief Executive Officer and
Chief Financial Officer, does not expect that our Disclosure Controls will prevent all error and all fraud. A control
system, no matter how well designed and operated, can provide only reasonable assurance of achieving the
designed control objectives and management is required to apply its judgment in evaluating the cost-benefit
relationship of possible controls and procedures. Because of the inherent limitations in all control systems, no
evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within
the Company have been detected. These inherent limitations include the realities that judgments in decision-
making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can
be circumvented by the individual acts of some persons, by collusions of two or more people or by management
override of the control. Because of the inherent limitations in a cost-effective, maturing control system,
misstatements due to error or fraud may occur and not be detected.
As of the end of the period covered by this Form 10-K, we evaluated the effectiveness of the design and
operations of our Disclosure Controls. The controls evaluation was done under the supervision and with the
participation of management, including our Chief Executive Officer and Chief Financial Officer. Based on this
evaluation, our Chief Executive Officer and Chief Financial Officer have concluded our Disclosure Controls were
effective as of the end of the period covered by this Annual Report on Form 10-K.
(b) MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING – Management is
responsible for establishing and maintaining adequate internal control over financial reporting for the Company, as
such term is defined in Exchange Act Rules 13a-15(f). Under the supervision and with the participation of
management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the
effectiveness of our internal control over financial reporting based on the framework in “Internal Control –
Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO) as of April 30, 2010.
Based on our assessment, management concluded that, as of April 30, 2010, the Company’s internal control over
financial reporting was effective based on the criteria set forth by COSO.
The Company’s external auditors who audited the consolidated financial statements included in Item 8,
Deloitte & Touche LLP, an independent registered public accounting firm, have issued an audit report on the
effectiveness of the Company’s internal control over financial reporting. This report appears near the beginning of
Item 8.
(c) CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING – During the quarter ended April 30,
2010, there were no changes that materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.
ITEM 9B. OTHER INFORMATION
None.
H&R BLOCK 2010 Form 10K 73