Electronic Arts 2005 Annual Report Download - page 156

Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None.
Item 9A: Controls and Procedures
DeÑnition and Limitations of Disclosure Controls
Our disclosure controls and procedures (as deÑned in Rules 13a-15(e) and 15d-15(e) under the Exchange
Act are controls and other procedures that are designed to ensure that information required to be disclosed in
our reports Ñled under the Exchange Act, such as this report, is recorded, processed, summarized and reported
within the time periods speciÑed in the SEC's rules and forms. Disclosure controls and procedures are also
designed to ensure that such information is accumulated and communicated to our management, including
the Chief Executive OÇcer and Executive Vice President, Chief Financial and Administrative OÇcer, as
appropriate to allow timely decisions regarding required disclosure. Our management evaluates these controls
and procedures on an ongoing basis.
There are inherent limitations to the eÅectiveness of any system of disclosure controls and procedures. These
limitations include the possibility of human error, the circumvention or overriding of the controls and
procedures and reasonable resource constraints. In addition, because we have designed our system of controls
based on certain assumptions, which we believe are reasonable, about the likelihood of future events, our
system of controls may not achieve its desired purpose under all possible future conditions. Accordingly, our
disclosure controls and procedures provide reasonable assurance, but not absolute assurance, of achieving their
objectives.
Evaluation of Disclosure Controls and Procedures
Our Chief Executive OÇcer and Executive Vice President, Chief Financial and Administrative OÇcer, after
evaluating the eÅectiveness of our disclosure controls and procedures, believe that as of the end of the period
covered by this report, our disclosure controls and procedures were eÅective in providing the requisite
reasonable assurance that material information required to be disclosed in the reports that we Ñle or submit
under the Exchange Act is recorded, processed, summarized and reported within the time periods speciÑed in
the SEC's rules and forms, and is accumulated and communicated to our management, including our Chief
Executive OÇcer and Executive Vice President, Chief Financial and Administrative OÇcer, as appropriate to
allow timely decisions regarding the required disclosure.
Management's Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over Ñnancial
reporting, as deÑned in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as
amended (the ""Exchange Act'').
Our internal control over Ñnancial reporting is designed to provide reasonable, but not absolute, assurance
regarding the reliability of Ñnancial reporting and the preparation of Ñnancial statements in accordance with
generally accepted accounting principles. There are inherent limitations to the eÅectiveness of any system of
internal control over Ñnancial reporting. These limitations include the possibility of human error, the
circumvention or overriding of the system and reasonable resource constraints. Because of its inherent
limitations, our internal control over Ñnancial reporting may not prevent or detect misstatements. Projections
of any evaluation of eÅectiveness to future periods are subject to the risks that controls may become
inadequate because of changes in conditions, or that the degree of compliance with our policies or procedures
may deteriorate.
Our management assessed the eÅectiveness of our internal control over Ñnancial reporting as of the end of our
most recently completed Ñscal year. In making this assessment, our management used the criteria set forth in
Internal Control-Integrated Framework, issued by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO). Based on this assessment, our management believes that, as of the end of
our most recently completed Ñscal year, our internal control over Ñnancial reporting was eÅective.
100