Jib Jab 101

Internal Controls Over Financial Reporting. Company management explicitly acknowledges their accountability for being able to create accurate, reliable, sufficiently detailed, and timely external financial reports. To address this accountability, the firm makes use of a structured internal control framework the Internal Control – Integrated Framework which was issued by the Committee of Sponsoring Organizations of the Treadway Commission . Using this established framework, management was able to state that their “internal control over financial reporting was effective as of October 3, 2009”.

The purpose of using this framework is to:

i. “Pertain to the maintenance of records that accurately reflect the transactions and dispositions of assets of Disney in reasonable detail.

ii. Provide reasonable assurance that their transactions are recorded in such a way as to permit the preparation of financial statements intended for external use that are in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made in accordance with authorizations of management and directors of the company

iii. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquistion, use , or disposition of the company’s assets that could materially affect the financial statements.”

Independent Accounting Auditors. Disney makes use of PricewaterhouseCoopers as an independent auditing firm to provide a third party analysis of their internal controls over financial reporting. Management reports that PWC confirms that their internal controls appear to be functioning at a level that allows management to make the claim that their internal controls are effective as of October 3, 2009. In addition, PricewaterhouseCoopers’ own report to the Board of Directors and Shareholders of The Walt Disney Company is included in the Annual Report and discusses the process by which Disney’s internal controls over...