Coca Cola 2006 Annual Report Download - page 129

Report of Independent Registered Public Accounting Firm
on Internal Control Over Financial Reporting
Board of Directors and Shareowners
The Coca-Cola Company
We have audited management’s assessment, included in the accompanying Report of Management on Internal Control
Over Financial Reporting, that The Coca-Cola Company and subsidiaries maintained effective internal control over
financial reporting as of December 31, 2006, based on criteria established in Internal Control—Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Coca-Cola
Company’s management is responsible 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 an opinion on
management’s assessment and an opinion on the effectiveness of the Company’s internal control over financial reporting
based on our audit.
We conducted our audit 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 financial reporting was maintained in all material respects. Our audit 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 audit provides a reasonable basis for our opinion.
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 (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) 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 (3) 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.
As indicated in the accompanying Report of Management on Internal Control Over Financial Reporting,
management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include
the internal controls of Kerry Beverages Limited (subsequently renamed Coca-Cola China Industries Limited),
Brucephil, Inc., Apollinaris GmbH and TJC Holdings (Pty) Ltd. which are included in the 2006 consolidated financial
statements of The Coca-Cola Company and subsidiaries and constituted approximately 6.1 percent of the Company’s
consolidated total assets as of December 31, 2006 and approximately 1.6 percent of the Company’s consolidated net
operating revenues for the year then ended. Our audit of internal control over financial reporting of The Coca-Cola
Company also did not include an evaluation of the internal control over financial reporting of Kerry Beverages Limited
(subsequently renamed Coca-Cola China Industries Limited), Brucephil, Inc., Apollinaris GmbH and TJC Holdings
(Pty) Ltd.
In our opinion, management’s assessment that The Coca-Cola Company and subsidiaries maintained effective internal
control over financial reporting as of December 31, 2006, is fairly stated, in all material respects, based on the COSO
criteria. Also, in our opinion, The Coca-Cola Company and subsidiaries maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2006, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), the consolidated balance sheets of The Coca-Cola Company and subsidiaries as of December 31, 2006 and 2005,
and the related consolidated statements of income, shareowners’ equity, and cash flows for each of the three years in the
period ended December 31, 2006, and our report dated February 20, 2007, expressed an unqualified opinion thereon.
Atlanta, Georgia
February 20, 2007
127