Qualcomm 2004 Annual Report Download - page 56

QUALCOMM 52
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Stockholders of QUALCOMM Incorporated
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, cash flows and stock-
holders’ equity present fairly, in all material respects, the financial position of QUALCOMM Incorporated and its subsidiaries (the “Company”)
at September 30, 2004 and 2003, and the results of their operations and their cash flows for each of the three years in the period ended
September 30, 2004 in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, man-
agement’s assessment, included in the accompanying Management’s Report on Internal Control Over Financial Reporting, that the Company
maintained effective internal control over financial reporting as of September 30, 2004 based on criteria established in Internal Control —
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), is fairly stated, in all material
respects, based on those criteria. Furthermore, in our opinion, the Company maintained, in all material respects, effective internal control over
financial reporting as of September 30, 2004, based on criteria established in Internal Control — Integrated Framework issued by the 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. Our responsibility is to
express opinions on (i) these financial statements and financial statement schedule; (ii) management’s assessment; and (iii) the effectiveness
of the Company’s internal control over financial reporting based on our audits.
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 misstate-
ment and whether effective internal control over financial reporting was maintained in all material respects. Our audit of 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, evaluating management’s
assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we
considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Acompany’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.
Acompany’sinternal 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 arerecorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company arebeing 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’sassets 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.
As discussed in Note 1 to the consolidated financial statements, the Company adopted Statement of Financial Accounting Standards No. 142,
“Goodwill and Other Intangible Assets,” during the year ended September 30, 2003.
PRICEWATERHOUSECOOPERS LLP
San Diego, California
November 2, 2004