Siemens 2006 Annual Report Download - page 82

Report of the Supervisory Board
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The Audit Committee met six times during the year, sometimes without the Managing Board in
attendance, to evaluate its own activities and review its bylaws.
The Mediation Committee, formed pursuant to § 27 (3) of the German Codetermination Act,
had no occasion to meet during the year. The Ownership Rights Committee, defined in § 32 of the
Act, voted on six resolutions using a notational, or written, voting process and notified the Board
of the outcome at ensuing meetings.
All committees reported to the Supervisory Board on a regular basis.
Financial statements
Our independent auditors, KPMG Deutsche Treuhand-Gesellschaft AG Wirtschaftsprüfungsge-
sellschaft (KPMG), Berlin and Frankfurt/Main, audited the Annual Financial Statements of Siemens
AG and the related management’s discussion and analysis (MD&A) as well as the consolidated
MD&A for the year ended September 30, 2006 in accordance with the requirements of the
German Commercial Code (HGB) and approved them without qualification. The Consolidated
Financial Statements were prepared in accordance with U.S. generally accepted accounting prin-
ciples (U.S. GAAP). KPMG’s audit was conducted in accordance with German generally accepted
standards for the audit of financial statements promulgated by the “Institut der Wirtschaftsprüfer
in Deutschland e.V.” (IDW). KPMG confirmed that the Consolidated Financial Statements and the
consolidated MD&A fulfill the conditions for exemption from compliance with reporting rules
under German law.
The above-mentioned documents as well as the Managing Board’s proposal for the appropria-
tion of net income were submitted to us by the Managing Board in a timely manner. The Audit
Committee discussed these documents in detail. We also examined them. The KPMG audit reports
were presented to all members of the Supervisory Board, and we reviewed them comprehensively
at our meeting on December 11, 2006, in the presence of the independent auditors, who reported
on the main findings of their audit. At this meeting, the Managing Board explained the Annual
and Consolidated Financial Statements as well as the risk management system. It also provided
a detailed report on the scope, focal points and costs of the audit.
As a result of the definitive findings of the examination by the Audit Committee and the full
Supervisory Board, we raised no objections. In view of our approval, the financial statements are
accepted as submitted.
We endorse the Managing Board’s proposal that the net income available for distribution be
used to pay out a dividend of €1.45 per share entitled to a dividend. In addition, we approve the
proposal that the amount attributable to treasury stock be carried forward.