2014 Beef Checkoff Annual Report | Page 15

Cattlemen’s Beef Promotion and Research Board Financial Statements as of September 30, 2014 and 2013 Together with Independent Auditors’ Report Thereon Independent Auditors’ Report Board of Directors Cattlemen’s Beef Promotion and Research Board Centennial, Colorado Report on the Financial Statements We have audited the accompanying financial statements of Cattlemen’s Beef Promotion and Research Board (the Board), which comprise the statements of assets, liabilities and net assets — modified cash basis as of September 30, 2014 and 2013, and the related statements of revenues, expenses, and changes in unrestricted net assets ­ modified cash basis for the years then ended, and the related notes to the financial statements. — Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with the modified cash basis of accounting described in Note 2; this includes determining that the modified cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the assets, liabilities, and net assets — modified cash basis of the Board as of September 30, 2014 and 2013, and its revenues, expenses, and changes