Proctor and Gamble 2008 Annual Report Download - page 39

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TheProcter&GambleCompany 37


Managementisresponsibleforestablishingandmaintainingadequate
internalcontrolovernancialreportingofTheProcter&Gamble
Company(asdenedinRule13a-15(f)undertheSecuritiesExchange
Actof1934,asamended).Ourinternalcontrolovernancialreporting
isdesignedtoprovidereasonableassuranceregardingthereliability
ofnancialreportingandthepreparationofnancialstatementsfor
externalpurposesinaccordancewithgenerallyacceptedaccounting
principlesintheUnitedStatesofAmerica.
Stronginternalcontrolsisanobjectivethatisreinforcedthroughour
Worldwide Business Conduct Manual,whichsetsforthourcommit-
menttoconductbusinesswithintegrity,andwithinboththeletter
andthespiritofthelaw.TheCompany’sinternalcontrolovernancial
reportingincludesaControlSelf-AssessmentProgramthatisconducted
annuallybysubstantiallyallareasoftheCompanyandisauditedby
theinternalauditfunction.Managementtakestheappropriateaction
tocorrectanyidentiedcontroldeciencies.Becauseofitsinherent
limitations,anysystemofinternalcontrolovernancialreporting,no
matterhowwelldesigned,maynotpreventordetectmisstatements
duetothepossibilitythatacontrolcanbecircumventedoroverridden
orthatmisstatementsduetoerrororfraudmayoccurthatarenot
detected.Also,becauseofchangesinconditions,internalcontrol
effectivenessmayvaryovertime.
ManagementassessedtheeffectivenessoftheCompany’sinternal
controlovernancialreportingasofJune30,2008,usingcriteria
establishedinInternal Control — Integrated Frameworkissuedbythe
CommitteeofSponsoringOrganizationsoftheTreadwayCommission
(COSO)andconcludedthattheCompanymaintainedeffective
internalcontrolovernancialreportingasofJune30,2008,based
onthesecriteria.
Deloitte&ToucheLLP,anindependentregisteredpublicaccountingrm,
hasauditedtheeffectivenessoftheCompany’sinternalcontrolover
nancialreportingasofJune30,2008,asstatedintheirreportwhich
isincludedherein.
 
ChairmanoftheBoard ViceChairmanand
andChiefExecutiveOfcer ChiefFinancialOfcer
August12,2008
TotheBoardofDirectorsandShareholdersof
TheProcter&GambleCompany
WehaveauditedtheaccompanyingConsolidatedBalanceSheetsof
TheProcter&GambleCompanyandsubsidiaries(the“Company”)as
ofJune30,2008and2007,andtherelatedConsolidatedStatements
ofEarnings,Shareholders’Equity,andCashFlowsforeachofthethree
yearsintheperiodendedJune30,2008.Thesenancialstatementsare
theresponsibilityoftheCompany’smanagement.Ourresponsibilityis
toexpressanopiniononthesenancialstatementsbasedonouraudits.
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audittoobtain
reasonableassuranceaboutwhetherthenancialstatementsarefree
ofmaterialmisstatement.Anauditincludesexamining,onatestbasis,
evidencesupportingtheamountsanddisclosuresinthenancial
statements.Anauditalsoincludesassessingtheaccountingprinciples
usedandsignicantestimatesmadebymanagement,aswellas
evaluatingtheoverallnancialstatementpresentation.Webelieve
thatourauditsprovideareasonablebasisforouropinion.
Inouropinion,suchConsolidatedFinancialStatementspresentfairly,
inallmaterialrespects,thenancialpositionoftheCompanyat
June30,2008and2007,andtheresultsofitsoperationsandcash
owsforeachofthethreeyearsintheperiodendedJune30,2008,
inconformitywithaccountingprinciplesgenerallyacceptedinthe
UnitedStatesofAmerica.
AsdiscussedinNote1totheConsolidatedFinancialStatements,
theCompanyadoptedtheprovisionsofFASBInterpretationNo.48,
“AccountingforUncertaintyinIncomeTaxes—aninterpretationof
FASBStatementNo.109,”effectiveJuly1,2007.Also,asdiscussedin
Note1totheConsolidatedFinancialStatements,theCompanyadopted
theprovisionsofSFASNo.158,“Employers’AccountingforDened
BenetPensionandOtherPostretirementPlans,anamendmentof
FASBStatementsNo.87,88,106,and132(R),”effectiveJune30,2007.
Wehavealsoaudited,inaccordancewiththestandardsofthePublic
CompanyAccountingOversightBoard(UnitedStates),theCompany’s
internalcontrolovernancialreportingasofJune30,2008,basedon
thecriteriaestablishedinInternal Control — Integrated Framework
issuedbytheCommitteeofSponsoringOrganizationsoftheTreadway
CommissionandourreportdatedAugust12,2008,expressedan
unqualiedopinionontheCompany’sinternalcontrolovernancial
reporting.
Cincinnati,Ohio
August12,2008