Electronic Arts 2006 Annual Report Download - page 182

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 Securities
Exchange Act of 1934, as amended (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 our 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 our 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 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. We have excluded from our evaluation of our internal control over
Ñnancial reporting the internal control over Ñnancial reporting of JAMDAT Mobile Inc. (""JAMDAT''),
which we acquired on February 15, 2006. As of March 31, 2006, total assets, excluding goodwill and
acquired intangible assets, subject to JAMDAT's internal control over Ñnancial reporting represented
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