Siemens 2005 Annual Report Download - page 134

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Controls and procedures
Disclosure controls and procedures (SOA 302)
For its fiscal year 2005, Siemens performed an evaluation of the effectiveness of the design and
operation of its disclosure controls and procedures (Sarbanes-Oxley Act (SOA) Section 302).
Disclosure controls and procedures are designed to ensure that the material financial and non-
financial information required to be disclosed in the Form 20-F and filed with the U.S. Securities
and Exchange Commission is recorded, processed, summarized and reported timely. The evalua-
tion was performed with the participation of our key corporate senior management, senior man-
agement of each business Group, and under the supervision of the CEO, Dr. Klaus Kleinfeld, and
the CFO, Heinz-Joachim Neubürger, who sign the appropriate certificates. In designing and evalu-
ating the disclosure controls and procedures, management recognized that any controls and pro-
cedures, no matter how well designed and operated, can provide only reasonable, rather than
absolute, assurance of achieving the desired control objectives, and management necessarily was
required to apply its judgment in evaluating the cost-benefit relationship of possible controls and
procedures. Based on the foregoing, the Company’s management, including the CEO and CFO,
concluded that Siemens’ disclosure controls and procedures were effective as of September 30,
2005.
Management’s annual report on internal control over financial reporting (SOA 404)
The management of Siemens is responsible for establishing and maintaining adequate internal
control over financial reporting. Siemens’ internal control system is designed to provide reason-
able assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with accounting principles generally accepted in
the United States of America.
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.
Management's assessment of the effectiveness of Siemens’ internal control over financial
reporting as of September 30, 2005 excludes, in accordance with applicable guidance provided
by the Securities and Exchange Commission, various acquisitions completed in fiscal 2005. For
further information on significant acquisitions excluded see “Notes to Consolidated Financial
Statements, Note 3 aa).” Total assets and revenues of these acquisitions constituted less than 9%
and 3%, respectively, of the related Consolidated Financial Statement line item as of and for the
year ended September 30, 2005.
Internal control over financial reporting