Coca Cola 2007 Annual Report Download - page 130

REPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The Coca-Cola Company and Subsidiaries
Management of the Company is responsible for the preparation and integrity of the consolidated financial statements
appearing in our annual report on Form 10-K. The financial statements were prepared in conformity with generally accepted
accounting principles appropriate in the circumstances and, accordingly, include certain amounts based on our best judgments and
estimates. Financial information in this annual report on Form 10-K is consistent with that in the financial statements.
Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting
as such term is defined in Rules 13a-15(f) under the Securities Exchange Act of 1934 (“Exchange Act”). The Company’s internal
control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of the consolidated financial statements. Our internal control over financial reporting is supported by a program of
internal audits and appropriate reviews by management, written policies and guidelines, careful selection and training of qualified
personnel and a written Code of Business Conduct adopted by our Company’s Board of Directors, applicable to all Company
Directors and all officers and employees of our Company and subsidiaries.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements and even
when determined to be effective, can only provide reasonable assurance with respect to financial statement preparation and
presentation. 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.
The Audit Committee of our Company’s Board of Directors, composed solely of Directors who are independent in accordance
with the requirements of the New York Stock Exchange listing standards, the Exchange Act and the Company’s Corporate
Governance Guidelines, meets with the independent auditors, management and internal auditors periodically to discuss internal
control over financial reporting and auditing and financial reporting matters. The Audit Committee reviews with the independent
auditors the scope and results of the audit effort. The Audit Committee also meets periodically with the independent auditors and
the chief internal auditor without management present to ensure that the independent auditors and the chief internal auditor have
free access to the Audit Committee. Our Audit Committee’s Report can be found in the Company’s 2008 Proxy Statement.
Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2007.
In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in Internal Control—Integrated Framework. During 2007, the Company acquired the 65 percent interest in
Coca-Cola Bottlers Philippines, Inc. which it did not already own and 18 bottling and distribution operations in Germany. Refer to
Note 20 of Notes to Consolidated Financial Statements for additional information regarding these events. In accordance with SEC
Staff guidance, management has excluded these businesses from its evaluation of the effectiveness of the Company’s internal
control over financial reporting as of December 31, 2007. The net operating revenues attributable to these businesses represented
approximately 3.5 percent of the Company’s consolidated net operating revenues for the year ended December 31, 2007, and their
aggregate total assets represented approximately 5.0 percent of the Company’s consolidated total assets as of December 31, 2007.
Based on our assessment, management believes that the Company maintained effective internal control over financial reporting as
of December 31, 2007.
The Company’s independent auditors, Ernst & Young LLP, a registered public accounting firm, are appointed by the Audit
Committee of the Company’s Board of Directors, subject to ratification by our Company’s shareowners. Ernst & Young LLP has
audited and reported on the consolidated financial statements of The Coca-Cola Company and subsidiaries and the Company’s
internal control over financial reporting. The reports of the independent auditors are contained in this annual report.
E. Neville Isdell Harry L. Anderson
Chairman, Board of Directors,
and Chief Executive Officer
February 27, 2008
Vice President and Controller
February 27, 2008
Gary P. Fayard
Executive Vice President
and Chief Financial Officer
February 27, 2008
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