LeapFrog 2015 Annual Report Download - page 51

Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of
LeapFrog Enterprises, Inc.
In our opinion, the accompanying consolidated balance sheets as of March 31, 2015 and 2014 and the related
consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for the year
ended March 31, 2015, for the three months ended March 31, 2014 and for the year ended December 31,
2013 present fairly, in all material respects, the financial position of LeapFrog Enterprises, Inc. and its
subsidiaries as of March 31, 2015 and 2014, and the results of their operations and their cash flows for the
year ended March 31, 2015, the three months ended March 31, 2014 and the year ended December 31, 2013
in conformity with accounting principles generally accepted in the United States of America. In addition, in
our opinion, the financial statement schedule appearing in the index under Item 15(2) for the year ended
March 31, 2015, three months ended March 31, 2014 and year ended December 31, 2013 presents fairly, in
all material respects, the information set forth therein when read in conjunction with the related consolidated
financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal
control over financial reporting as of March 31, 2015 based on criteria established in Internal Control —
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). The Company’s management is responsible for these financial statements and financial
statement schedule, for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting, included in Management’s Annual Report on
Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions
on these financial statements, on the financial statement schedule, and on the Company’s internal control over
financial reporting based on our audits (which were integrated audits at March 31, 2015 and December 31,
2013). We conducted our audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material misstatement and whether
effective internal control over financial reporting was maintained in all material respects. Our audits of the
financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. Our audit of internal control over
financial reporting included obtaining an understanding of internal control over financial reporting, assessing
the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. Our audits also included performing such other procedures as we
considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our
opinions.
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 generally accepted accounting principles. A company’s internal control over financial
reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
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 (iii) 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.
/s/ PricewaterhouseCoopers LLP
San Francisco, California
June 15, 2015
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