John Deere 2015 Annual Report Download - page 30

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and
FINANCIAL REPORTING
significant estimates made by management, and evaluating the
The management of Deere & Company is responsible for overall financial statement presentation. Our audit of internal
establishing and maintaining adequate internal control over control over financial reporting included obtaining an
financial reporting. Deere & Company’s internal control system understanding of internal control over financial reporting,
was designed to provide reasonable assurance regarding the assessing the risk that a material weakness exists, and testing
preparation and fair presentation of published financial and evaluating the design and operating effectiveness of internal
statements in accordance with generally accepted accounting control based on the assessed risk. Our audits also included
principles. performing such other procedures as we considered necessary in
All internal control systems, no matter how well designed, the circumstances. We believe that our audits provide a
have inherent limitations. Therefore, even those systems reasonable basis for our opinions.
determined to be effective can provide only reasonable A company’s internal control over financial reporting is a
assurance with respect to financial statement preparation and process designed by, or under the supervision of, the company’s
presentation in accordance with generally accepted accounting principal executive and principal financial officers, or persons
principles. performing similar functions, and effected by the company’s
Management assessed the effectiveness of the company’s board of directors, management, and other personnel to provide
internal control over financial reporting as of October 31, 2015, reasonable assurance regarding the reliability of financial
using the criteria set forth in Internal Control – Integrated reporting and the preparation of financial statements for
Framework (2013) issued by the Committee of Sponsoring external purposes in accordance with generally accepted
Organizations of the Treadway Commission. Based on that accounting principles. A company’s internal control over financial
assessment, management believes that, as of October 31, 2015, reporting includes those policies and procedures that (1) pertain
the Company’s internal control over financial reporting was to the maintenance of records that, in reasonable detail,
effective. accurately and fairly reflect the transactions and dispositions of
the assets of the company; (2) provide reasonable assurance that
The Company’s independent registered public accounting transactions are recorded as necessary to permit preparation of
firm has issued an audit report on the effectiveness of the financial statements in accordance with generally accepted
Company’s internal control over financial reporting. This report accounting principles, and that receipts and expenditures of the
appears below. company are being made only in accordance with authorizations
December 18, 2015 of management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of
REPORT OF INDEPENDENT unauthorized acquisition, use, or disposition of the company’s
REGISTERED PUBLIC ACCOUNTING FIRM assets that could have a material effect on the financial
Deere & Company: statements.
We have audited the accompanying consolidated balance sheets Because of the inherent limitations of internal control over
of Deere & Company and subsidiaries (the ‘‘Company’’) as of financial reporting, including the possibility of collusion or
October 31, 2015 and 2014, and the related statements of improper management override of controls, material
consolidated income, consolidated comprehensive income, misstatements due to error or fraud may not be prevented or
changes in consolidated stockholders’ equity, and consolidated detected on a timely basis. Also, projections of any evaluation of
cash flows for each of the three years in the period ended the effectiveness of the internal control over financial reporting
October 31, 2015. Our audits also included the financial to future periods are subject to the risk that the controls may
statement schedule listed in the Index under Part IV, Item 15(2). become inadequate because of changes in conditions, or that
We also have audited the Company’s internal control over the degree of compliance with the policies or procedures may
financial reporting as of October 31, 2015, based on criteria deteriorate.
established in Internal Control – Integrated Framework (2013)
In our opinion, the consolidated financial statements
issued by the Committee of Sponsoring Organizations of the
referred to above present fairly, in all material respects, the
Treadway Commission. The Company’s management is
financial position of the Company as of October 31, 2015 and
responsible for these financial statements and financial
2014, and the results of their operations and their cash flows for
statement schedule, for maintaining effective internal control
each of the three years in the period ended October 31, 2015, in
over financial reporting, and for its assessment of the
conformity with accounting principles generally accepted in the
effectiveness of internal control over financial reporting,
United States of America. Also, in our opinion, such financial
included in the accompanying Management’s Report on Internal
statement schedule, when considered in relation to the basic
Control Over Financial Reporting. Our responsibility is to express
consolidated financial statements taken as a whole, presents
an opinion on these financial statements and financial statement
fairly, in all material respects, the information set forth therein.
schedule and an opinion on the Company’s internal control over
Also, in our opinion, the Company maintained, in all material
financial reporting based on our audits.
respects, effective internal control over financial reporting as of
We conducted our audits in accordance with the standards October 31, 2015, based on the criteria established in Internal
of the Public Company Accounting Oversight Board (United Control – Integrated Framework (2013) issued by the Committee
States). Those standards require that we plan and perform the of Sponsoring Organizations of the Treadway Commission.
audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement and DELOITTE & TOUCHE LLP
whether effective internal control over financial reporting was Chicago, Illinois
maintained in all material respects. Our audits of the financial December 18, 2015
statements included examining, on a test basis, evidence
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