Twenty-First Century Fox 2014 Annual Report Download - page 79

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MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management of Twenty-First Century Fox, Inc. is responsible for establishing and maintaining adequate
internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange
Act of 1934, as amended. Twenty-First Century Fox, Inc.’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 accounting principles generally accepted in the United
States of America. The Company’s internal control over financial reporting includes those policies and procedures
that:
ypertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of Twenty-First Century Fox, Inc.;
yprovide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with accounting principles generally accepted in the United States of
America;
yprovide reasonable assurance that receipts and expenditures of Twenty-First Century Fox, Inc. are being
made only in accordance with authorization of management and directors of Twenty-First Century Fox,
Inc.; and
yprovide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use
or disposition of assets that could have a material effect on the consolidated financial statements.
Internal control over financial reporting includes the controls themselves, monitoring and internal auditing
practices and actions taken to correct deficiencies as identified.
Because of its inherent limitations, internal control over financial reporting, no matter how well designed, may
not prevent or detect misstatements. Accordingly, even effective internal control over financial reporting can
provide only reasonable assurance with respect to financial statement preparation. Also, the assessment of the
effectiveness of internal control over financial reporting was made as of a specific date. 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.
Management, including the Company’s principal executive officer and principal financial officer, conducted
an assessment of the effectiveness of Twenty-First Century Fox, Inc.’s internal control over financial reporting as of
June 30, 2014, based on criteria for effective internal control over financial reporting described in the 1992 “Internal
Control — Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Management’s assessment included an evaluation of the design of Twenty-First Century Fox, Inc.’s
internal control over financial reporting and testing of the operational effectiveness of its internal control over
financial reporting. Management reviewed the results of its assessment with the Audit Committee of Twenty-First
Century Fox, Inc.’s Board of Directors.
Based on this assessment, management determined that, as of June 30, 2014, Twenty-First Century Fox, Inc.
maintained effective internal control over financial reporting.
Ernst & Young LLP, the independent registered public accounting firm who audited and reported on the
Consolidated Financial Statements of Twenty-First Century Fox, Inc. included in the Annual Report on Form 10-K
for the fiscal year ended June 30, 2014, has audited the Company’s internal control over financial reporting. Their
report appears on the following page.