McDonalds 2007 Annual Report Download - page 65

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
We have audited McDonald’s Corporation’s internal control over fi nancial reporting as of December 31, 2007, based on criteria
established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (the COSO criteria). McDonald’s Corporation’s management is responsible for maintaining effective internal control
over fi nancial reporting and for its assessment of the effectiveness of internal control over fi nancial reporting included in the
accompanying report on Management’s Assessment of Internal Control over Financial Reporting. Our responsibility is to express
an opinion on the effectiveness of the Company’s internal control over fi nancial 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 fi nancial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal
control over fi nancial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk, 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 fi nancial reporting is a process designed to provide reasonable assurance regarding the reliability
of fi nancial reporting and the preparation of fi nancial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over fi nancial reporting includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly refl ect the transactions and dispositions of the assets
of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of fi nancial
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 fi nancial statements.
Because of its inherent limitations, internal control over fi nancial 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.
In our opinion, McDonald’s Corporation maintained, in all material respects, effective internal control over fi nancial reporting as
of December 31, 2007, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States),
the accompanying consolidated fi nancial statements of McDonald’s Corporation as of December 31, 2007 and 2006, and for
each of the three years in the period ended December 31, 2007, and our report dated February 18, 2008, expressed an unqualifi ed
opinion thereon.
ERNST & YOUNG LLP
Chicago, Illinois
February 18, 2008
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