Philips 2015 Annual Report Download - page 104

Group nancial statements 12.1
104 Annual Report 2015
12.1 Management’s report on internal
control
Management’s report on internal control over
nancial reporting pursuant to section 404 of
the US Sarbanes-Oxley Act
The Board of Management of Koninklijke Philips N.V.
(the Company) is responsible for establishing and
maintaining an adequate system of internal control
over nancial reporting (as such term is dened in Rule
13a-15(f) under the US Securities Exchange Act).
Internal control over nancial reporting is a process to
provide reasonable assurance regarding the reliability
of our nancial reporting for external purposes in
accordance with IFRS as issued by the IASB.
Internal control over nancial reporting includes
maintaining records that, in reasonable detail,
accurately and fairly reect our transactions; providing
reasonable assurance that transactions are recorded as
necessary for preparation of our nancial statements;
providing reasonable assurance that receipts and
expenditures of company assets are made in
accordance with management authorization; and
providing reasonable assurance that unauthorized
acquisition, use or disposition of company assets that
could have a material eect on our nancial statements
would be prevented or detected on a timely basis.
Because of its inherent limitations, internal control over
nancial reporting is not intended to provide absolute
assurance that a misstatement of our nancial
statements would be prevented or detected. Also,
projections of any evaluation of the eectiveness of
internal control over nancial reporting to future
periods are subject to the risk that the controls may
become inadequate because of changes in conditions,
or that the degree of compliance with the policies or
procedures may deteriorate.
The Board of Management conducted an assessment
of the Company’s internal control over nancial
reporting based on the “Internal Control- Integrated
Framework (2013)” established by the Committee of
Sponsoring Organizations of the Treadway Commission
(COSO). Based on that assessment, the Board of
Management concluded that, as of December 31, 2015,
the Company’s internal control over Group nancial
reporting is considered eective.
The eectiveness of the Company’s internal control
over nancial reporting as of December 31, 2015, as
included in this section Group nancial statements, has
been audited by KPMG Accountants N.V., an
independent registered public accounting rm, as
stated in their report which follows hereafter.
Board of Management
Frans van Houten
Abhijit Bhattacharya
Pieter Nota
February 23, 2016
12.1.1 Changes in internal control over nancial
reporting
During the year ended December 31, 2015, there have
been no changes in our internal control over nancial
reporting that have materially aected, or are
reasonably likely to materially aect, our internal
control over nancial reporting.
12.2 Report of the independent auditor
Management’s report on internal control over nancial
reporting is set out in section 12.1, Management’s report
on internal control, of this Annual Report. The report set
out in section section 12.3, Independent auditors’ report
on internal control over nancial reporting, of this
Annual Report, is provided in compliance with
standards of the Public Company Accounting Oversight
Board in the US and includes an opinion on the
eectiveness of internal control over nancial reporting
as at December 31, 2015.
KPMG Accountants N.V. has also issued a report on the
consolidated nancial statements and the company
nancial statements, in accordance with Dutch law,
including the Dutch standards on auditing, of
Koninklijke Philips N.V., which is set out in section 13.5,
Independent auditor’s report, of this Annual Report.
KPMG Accountants N.V. has also issued a report on the
consolidated nancial statements in accordance with
the standards of the Public Company Accounting
Oversight Board in the US, which will be included in the
Annual Report on Form 20-F expected to be led with
the US Securities and Exchange Commission on
February 23, 2016.