Proctor and Gamble 2008 Annual Report Download - page 40

38 TheProcter&GambleCompany

TotheBoardofDirectorsandShareholdersof
TheProcter&GambleCompany
Wehaveauditedtheinternalcontrolovernancialreportingof
TheProcter&GambleCompanyandsubsidiaries(the“Company”)as
ofJune30,2008,basedoncriteriaestablishedinInternal Control —
Integrated FrameworkissuedbytheCommitteeofSponsoring
OrganizationsoftheTreadwayCommission.TheCompany’smanage-
mentisresponsibleformaintainingeffectiveinternalcontrolover
nancialreportingandforitsassessmentoftheeffectivenessof
internalcontrolovernancialreporting,includedinManagement’s
ReportonInternalControlOverFinancialReporting.Ourresponsibility
istoexpressanopinionontheCompany’sinternalcontrolover
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
nancialreportingwasmaintainedinallmaterialrespects.Ouraudit
includedobtaininganunderstandingofinternalcontrolover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nancialreportingisaprocess
designedby,orunderthesupervisionof,thecompany’sprincipal
executiveandprincipalnancialofcers,orpersonsperforming
similarfunctions,andeffectedbythecompany’sboardofdirectors,
management,andotherpersonnel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.Acompany’sinternalcontrolover
nancialreportingincludesthosepoliciesandproceduresthat(1)pertain
tothemaintenanceofrecordsthat,inreasonabledetail,accurately
andfairlyre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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nancial
statements.
Becauseoftheinherentlimitationsofinternalcontrolovernancial
reporting,includingthepossibilityofcollusionorimpropermanagement
overrideofcontrols,materialmisstatementsduetoerrororfraudmay
notbepreventedordetectedonatimelybasis.Also,projectionsof
anyevaluationoftheeffectivenessofthe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.
Inouropinion,theCompanymaintained,inallmaterialrespects,
effective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.
Wehavealsoaudited,inaccordancewiththestandardsofthePublic
CompanyAccountingOversightBoard(UnitedStates),theConsolidated
FinancialStatementsasofandfortheyearendedJune30,2008of
theCompanyandourreportdatedAugust12,2008expressedan
unqualiedopiniononthosenancialstatementsandincludedan
explanatoryparagraphregardingtheCompany’sadoptionofthe
provisionsofFASBInterpretationNo.48,“AccountingforUncertainty
inIncomeTaxes—aninterpretationofFASBStatementNo.109,”
effectiveJuly1,2007andtheCompany’sadoptionof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.
Cincinnati,Ohio
August12,2008