Taco Bell 2004 Annual Report Download - page 78
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Please find page 78 of the 2004 Taco Bell annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.ReportofIndependentRegisteredPublicAccountingFirm
TheBoardofDirectorsandShareholders
YUM!Brands,Inc.:
Wehaveauditedmanagement’sassessment,includedinManagement’sReportonInternalControloverFinancialReporting,
appearingonpage74oftheCompany’sAnnualReportforthefiscalyearendedDecember25,2004,thatYUM!Brands,Inc.and
Subsidiaries(“YUM”)maintainedeffectiveinternalcontroloverfinancialreportingasofDecember25,2004,basedoncriteria
establishedinInternalControl—IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadway
Commission(COSO).YUM’smanagementisresponsibleformaintainingeffectiveinternalcontroloverfinancialreportingand
foritsassessmentoftheeffectivenessofinternalcontroloverfinancialreporting.Ourresponsibilityistoexpressanopinion
onmanagement’sassessmentandanopinionontheeffectivenessoftheCompany’sinternalcontroloverfinancialreporting
basedonouraudit.
WeconductedourauditinaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(United
States).Thosestandardsrequirethatweplanandperformtheaudittoobtainreasonableassuranceaboutwhethereffective
internalcontroloverfinancialreportingwasmaintainedinallmaterialrespects.Ourauditincludedobtaininganunderstandingof
internalcontroloverfinancialreporting,evaluatingmanagement’sassessment,testingandevaluatingthedesignandoperating
effectivenessofinternalcontrol,andperformingsuchotherproceduresasweconsiderednecessaryinthecircumstances.We
believethatourauditprovidesareasonablebasisforouropinion.
Acompany’sinternalcontroloverfinancialreportingisaprocessdesignedtoprovidereasonableassuranceregardingthereli-
abilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithgenerallyaccepted
accountingprinciples.Acompany’sinternalcontroloverfinancialreportingincludesthosepoliciesandproceduresthat(1)pertain
tothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflectthetransactionsanddispositionsoftheassets
ofthecompany;(2)providereasonableassurancethattransactionsarerecordedasnecessarytopermitpreparationoffinancial
statementsinaccordancewithgenerallyacceptedaccountingprinciples,andthatreceiptsandexpendituresofthecompanyare
beingmadeonlyinaccordancewithauthorizationsofmanagementanddirectorsofthecompany;and(3)providereasonableassur-
anceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofthecompany’sassetsthatcould
haveamaterialeffectonthefinancialstatements.
Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmisstatements.Also,
projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecomeinadequate
becauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
Inouropinion,management’sassessmentthatYUMmaintainedeffectiveinternalcontroloverfinancialreportingasof
December25,2004,isfairlystated,inallmaterialrespects,basedoncriteriaestablishedinInternalControl—Integrated
FrameworkissuedbytheCommitteeofSponsoringOrganizationsoftheTreadwayCommission(COSO).Also,inouropinion,
YUMmaintained,inallmaterialrespects,effectiveinternalcontroloverfinancialreportingasofDecember25,2004,based
oncriteriaestablishedinInternalControl—IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsofthe
TreadwayCommission(COSO).
Wealsohaveaudited,inaccordancewiththestandardsofthePublicCompanyAccountingOversightBoard(UnitedStates),
theconsolidatedbalancesheetsofYUMasofDecember25,2004andDecember27,2003,andtherelatedconsolidatedstate-
mentsofincome,cashflows,andshareholders’equityandcomprehensiveincomeforeachoftheyearsinthethree-yearperiod
endedDecember25,2004,andourreportdatedFebruary28,2005,expressedanunqualifiedopiniononthoseconsolidated
financialstatements.
KPMGLLP
Louisville,KY
February28,2005
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