Hormel Foods 2015 Annual Report Download - page 36

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Because of its inherent limitations, internal control over fi nan-
cial 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 com-
pliance with the policies or procedures may deteriorate.
In our opinion, Hormel Foods Corporation maintained, in all
material respects, effective internal control over fi nancial
reporting as of October 25, 2015, based on the COSO criteria.
We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States),
the consolidated statements of fi nancial position of Hormel
Foods Corporation at October 25, 2015 and October 26, 2014
and the related statements of operations, comprehensive
income, changes in shareholders’ investment and cash fl ows
for each of the three years in the period ended October 25,
2015 and our report dated December 16, 2015 expressed an
unqualifi ed opinion thereon.
Minneapolis, Minnesota
December 16, 2015
The Board of Directors and Shareholders
Hormel Foods Corporation
We have audited Hormel Foods Corporation’s internal control
over fi nancial reporting as of October 25, 2015, based on
criteria established in Internal Control—Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Treadway Commission (2013 framework), (the COSO criteria).
Hormel Foods Corporation’s management is responsible for
maintaining effective internal control over fi nancial reporting,
and for its assessment of the effectiveness of internal control
over fi nancial reporting included in the accompanying Report
of Management entitled Management’s Report on Internal
Control Over Financial Reporting. Our responsibility is to
express an opinion on the company’s internal control over
fi 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 fi nancial reporting was maintained in all
material respects. Our audit included obtaining an understand-
ing of internal control over fi nancial reporting, assessing the
risk that a material weakness exists, testing and evaluating the
design and operating effectiveness of internal control based on
the assessed risk, 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 fi nancial reporting is a
process designed to provide reasonable assurance regarding
the reliability of fi nancial reporting and the preparation of
fi nancial statements for external purposes in accordance with
generally accepted accounting principles. A company’s inter-
nal control over fi nancial reporting includes those policies
and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly refl ect the
transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded
as necessary to permit preparation of fi 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 (3) provide reasonable assur-
ance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that
could have a material effect on the fi nancial statements.
Report of Independent Registered Public Accounting Firm