REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of The Walt Disney Company ln our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income statements of comprehensive income, shareholders' equity and cash flows present fairly, in all matenal respects, the financial position of The Walt Disney Company and its subsidiaries (the Company) at September 29, 2012 and October 1 2011. and the results of their operations and the ir cash flows for each of the three years in the period ended September 29 2012 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of September 29. 2012 based on enteria established in Iatermal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements, for maintaining effective intemal control over financial reporting and for its assessment of the effectiveness of intemal control over financial reporting, included in the accompanying Management's Report on Internal Control over Funancial Reporting. Our responsibility is to express opinions on these financial statements and on the Company's intemal coutrol over financial g based ou our integrated audits. We conducted our audits in accordance with the standards of the Public Company Atcounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective intemal control over financial reporting was maintained in all matenal respects. Our audits of the financial statements uncluded examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation Our audit of intermal control over financial reporting included obtaining an understanding of internal coutrol over financial reporting, assessing the risk that a material weakness exists. and testing and evaluating the design and operating effectiveness of internal coutrol based on the assessed risk Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions A company's untemal control over financial reporting is a process designed to provide reasonable assurance regarding the reliabulity of financial reporting and the preparation of financial statements for extemal purposes in accordance with generally accepted accounting principles A company's internal control over financial reporting includes those policies and procedures that () pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and positions of the assets of the company: (i) provide reasonable assurance that transactions are recorded as necessary to pemut preparatiou of funancial statements ia accordance with generally accepted accounting principles, and that receipts and expendirures of the company are being made ouly in accordance with authorizations of managemeut and directors of the company, and (ii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquistion, use, or of the compaay's assets that could have a muterial effect on the financial statemeats Because of its inherest limitations, i Also, projections of any evaluation of effectiveness to future periods are subject to the nisk that coutrols may become inadequate because of changes in conditions, or tdhat the degree of compliance with the policies or procedures may deteriorate ntemal control over financial reporting may not pre vent or detect musstatements PRICEWATERHOUSECOOPERS LLP Los Angeles, California November 21, 201.2 1) What's the type of PwC's opinion for the Disney corporation? 2) Based on the PwC's opinion in this case, what do you think about the financial statements of the company? 3) In whick accordance the audit report is conducted? Justify your answer from the PwC's report. 4) Explain why PwC conducted an audit over ICFR and Financial statements? Highlight sentences from the report that justify your answer. 5) When the auditor cannot give an unqualified opinion, he issues a report which lists for his concem about the company's financial statements and controls and the reasons possible effects on the financial statements. Determine this type of opinion
