PepsiCo is a world leader in convenient snacks, foods, and beverages with revenues of $60 billion and more than 285,000 employees (PepsiCo.com). PepsiCo manufactures, markets, and sells various foods, snacks, and carbonated and non-carbonated beverages worldwide. The company operates in four divisions: PepsiCo Americas Foods (PAF), PepsiCo Americas Beverages (PAB), PepsiCo Europe, PepsiCo Asia, Middle East and Africa (AMEA). PepsiCo owns some of the world's most popular brands, including Pepsi-Cola, Mountain Dew, Diet Pepsi, Lay's, Doritos, Tropicana, Gatorade, and Quaker. Our brands are available worldwide through a variety of go-to-market systems, including direct store delivery (DSD), broker-warehouse, food service, and vending. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with the Quaker Oats Company, including Gatorade, in 2001.
PepsiCo’s mission is to be the world’s premier consumer products company focused on convenient foods and beverages. PepsiCo seeks to produce financial rewards to investors as they provide opportunities for growth for employees, business partners and the communities in which they operate, and everything they do to strive for honesty, fairness, and integrity. “PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate-environment, social, economic - creating a better tomorrow than today.” (Pepsico.com)
PepsiCo’s system of internal control is designed to provide reasonable assurance that transactions are executed as authorized and accurately recorded; that assts are safeguarded; and that accounting records are sufficiently reliable to permit the preparation of financial statements that conform in all material respects with accounting principles generally accepted in the U.S. PepsiCo maintains disclosure controls and procedures designed to ensure that information required to be disclosed in reports under the Securities Exchange Act of 1934. The internal controls are monitored through self-assessments and an ongoing program of internal audits. Their internal controls are also reinforced through the Worldwide Code of Conduct, which sets forth their commitment to conduct business with integrity, and within both the letter and the spirit of the law. (PepsiCo.com)
PepsiCo is dependent on information technology as an enabler to improve the effectiveness of operations and to interface with customers as well as to maintain financial accuracy and efficiency. If PepsiCo does not allocated and effectively manage the resources necessary to build and sustain the proper technology infrastructure, there could be transaction errors, processing inefficiencies, the loss of customers, business disruptions, or the loss or damage to intellectual property through security breach.
In addition, PepsiCo has outsourced certain information technology support services and administrative functions, such as payroll processing and benefit plan administration, to third-party service providers, and may outsource other functions in the future to achieve cost savings and efficiencies.
PepsiCo’s management is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision and with the participation of management, including the CEO and CFO an evaluation of the effectiveness of their internal control over financial reporting. Management judgment is necessary to evaluate the impact of operating and macroeconomic changes and to estimate future cash flows. PepsiCo leverage an integrated risk management framework to identify, assess, prioritize, manage, monitor and communicate risks across the Company. This framework includes: (PepsiCo.com) • The PepsiCo Risk Committee (PRC), comprised of a cross-functional, geographically diverse, senior management group, which meets regularly to identify, assess, prioritize and address strategic and reputation risks; •...
Report of Independent Registered Public Accounting Firm, New York, NY February 15, 2008 KPMG LLP
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