Qualcomm 2005 Annual Report Download - page 55
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TO THE BOARD OF DIRECTORS AND STOCKHOLDERS
OF QUALCOMM INCORPORATED:
We have completed integrated audits of QUALCOMM Incorporated’s
2005 and 2004 consolidated fi nancial statements and of its internal
control over financial reporting as of September 25, 2005 and
September 26, 2004 and an audit of its 2003 consolidated fi nancial
statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Our opinions on
QUALCOMM Incorporated’s 2005, 2004 and 2003 consolidated fi nan-
cial statements and of its internal control over fi nancial reporting as
of September 25, 2005, based on our audits, are presented below.
Consolidated Financial Statements
In our opinion, the consolidated fi nancial statements present fairly,
in all material respects, the fi nancial position of QUALCOMM
Incorporated and its subsidiaries (the Company) as of September 25,
2005 and September 26, 2004, and the results of their operations
and their cash fl ows for each of the three years in the period ended
September 25, 2005 in conformity with accounting principles
generally accepted in the United States of America. These fi nancial
statements are the responsibility of the Company’s management. Our
responsibility is to express an opinion on these fi nancial statements
based on our audits. We conducted our audits of these statements
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 the fi nancial statements are free of material misstatement.
An audit of fi nancial statements includes examining, on a test basis,
evidence supporting the amounts and disclosures in the fi nancial
statements, assessing the accounting principles used and signifi cant
estimates made by management, and evaluating the overall fi nancial
statement presentation. We believe that our audits provide a reason-
able basis for our opinion.
Internal Control Over Financial Reporting
Also, in our opinion, management’s assessment, included in Manage-
ment’s Report on Internal Control Over Financial Reporting, that the
Company maintained effective internal control over fi nancial reporting
as of September 25, 2005 based on criteria established in Internal
Control—Integrated Framework issued by the Committee of Sponsor-
ing 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 fi nancial reporting as of September 25,
2005, based on criteria established in Internal Control—Integrated
Framework issued by the COSO. The Company’s management is
responsible for maintaining effective internal control over fi nancial
reporting and for its assessment of the effectiveness of internal
Report of Independent Registered Public Accounting Firm
control over fi nancial reporting. Our responsibility is to express
opinions on management’s assessment and on the effectiveness of
the Company’s internal control over fi nancial reporting based on our
audit. We conducted our audit of internal control over fi nancial report-
ing 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. An audit of internal control over
fi nancial reporting includes obtaining an understanding of internal
control over fi nancial reporting, evaluating management’s assess-
ment, testing and evaluating the design and operating effectiveness
of internal control, and performing such other procedures as we
consider necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinions.
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 internal control over fi nancial
reporting includes those policies and procedures that (i) 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; (ii) 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 (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 fi nancial statements.
Because of its inherent limitations, internal control over fi nancial
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.
PricewaterhouseCoopers LLP
San Diego, California
November 2, 2005