Johnson & Johnson - Index

Johnson & Johnson - report - Index

Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of
Johnson & Johnson:
In our opinion, the accompanying consolidated balance sheets
and the related consolidated statements of earnings, statements
of equity, and statements of cash flows present fairly, in all material
respects, the financial position of Johnson & Johnson and
its subsidiaries (“the Company”) at December 30, 2007 and
December 31, 2006, and the results of their operations and their
cash flows for each of the three years in the period ended
December 30, 2007 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
December 30, 2007, based on criteria established in Internal
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 internal control over financial
reporting and for its assessment of the effectiveness of internal
control over financial reporting, included in the accompanying,
“Management’s Report on Internal Control over Financial Reporting.”
Our responsibility is to express opinions on these financial
statements and on the Company’s internal control over financial
reporting based on our integrated audits. We conducted our
audits in accordance with the standards of the Public
Company Accounting 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 internal
control over financial reporting was maintained in all material
respects. Our audits of the financial statements included
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 internal control over financial reporting included obtaining
an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal
control 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 internal control over financial reporting is a
process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control
over financial reporting includes those policies and procedures
that (i) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (ii) provide reasonable assurance
that transactions are recorded as necessary to permit
preparation of financial 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 (iii) 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
financial statements.
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.
New York, New York
February 20, 2008
REPORT OF INDEPENDENT REGISTERED PUBLIC AC C OUNTING FIRM 75