GE 2015 Annual Report Download - page 153

REPORTS
GE 2015 FORM 10-K 125
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To Shareowners and Board of Directors
of General Electric Company:
We have audited the accompanying statement of financial position of General Electric Company and consolidated affiliates (the ³&RPSDQ\´DV
of December 31, DQGDQGWKHUHODWHGVWDWHPHQWVRIHDUQLQJVFRPSUHKHQVLYHLQFRPHFKDQJHVLQVKDUHRZQHUV¶HTXLW\DQGFDVK
flows for each of the years in the three-\HDUSHULRGHQGHG'HFHPEHU:HDOVRKDYHDXGLWHGWKH&RPSDQ\¶VLQWHUQDOFRQWURORYHU
financial reporting as of December 31, 2015, based on criteria established in Internal Control ± Integrated Framework (2013) issued by the
&RPPLWWHHRI6SRQVRULQJ2UJDQL]DWLRQVRIWKH7UHDGZD\&RPPLVVLRQ³&262´7KH&RPSDQ\¶VPDQDJHPHQWLVUHVSRQVLEOHIRUWKese
consolidated financial statements, 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 these consolidated financial statements and an opinion
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We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of
material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the
consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial
statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the
circumstances. We believe that our audits provide a reasonable basis for our opinions.
$FRPSDQ\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJLVDSURFHVVGHVLJQHGWRSURYLGHUHDVRQDEOHDVVXUDQFHUHJDUGLQJWKHUHOiability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A
FRPSDQ\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJLQFOXGHVWKRVHSROLFLHVDQGSURFHGXUHVWKDWSHUWDLQWRWKHPDLQWHQDQFe of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
On November 2, 2015, the Company completed thHDFTXLVLWLRQRI$OVWRP¶VThermal, Renewables and Grid businesses (collectively, the
³$FTXLUHG%XVLQHVVHV´DQGPDQDJHPHQWH[FOXGHGIURPLWVDVVHVVPHQWRIWKHHIIHFWLYHQHVVRIWKH&RPSDQ\¶VLQWHUQDOFRQWURORYer financial
reporting as of December 31, 2015WKH$FTXLUHG%XVLQHVVHV¶LQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDVVRFLDWHGZLWKWRWDODVVHWVUHSUHVHQWLQJ
3.5 percent of consolidated assets, and total revenues representing 1.7 percent of consolidated revenues and other income, included in the
consolidated financial statements of the Company as of and for the year ended December 31, 2015. Our audit of internal control over financial
reporting of the Company also excluded an evaluation of the internal control over financial reporting of the Acquired Businesses.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of General Electric Company
and consolidated affiliates as of December 31, 2015 and 2014, and the results of their operations and their cash flows for each of the years in
the three-year period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the
Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on criteria
established in Internal Control ± Integrated Framework (2013) issued by COSO.
Our audits of the consolidated financial statements were made for the purpose of forming an opinion on the consolidated financial statements
taken as a whole. The accompanying consolidating information appearing on pages 129, 133 and 135 is presented for purposes of additional
analysis of the consolidated financial statements rather than to present the financial position, results of operations and cash flows of the
individual entities. The consolidating information has been subjected to the auditing procedures applied in the audits of the consolidated
financial statements and, in our opinion, is fairly stated in all material respects in relation to the consolidated financial statements taken as a
whole.
/s/ KPMG LLP
KPMG LLP
New York, New York
February 26, 2016
GE 2015 FORM 10-K 125