Analyzing Internal Control of Annual Report

Nindita Rahmalaudina - C1L014037

Group Member:

Wasis Yuda Yanti - C1L014013

Rizkia Vionanda - C1L014034

INDEPENDENT AUDITOR’S REPORT ON CONSOLIDATED FINANCIAL STATEMENT OF SAMSUNG ELECTRONICS CO., LTD.

Consolidated financial statement of Samsung Electronics Co., LTD. and its subsidiaries have been audited by independent auditor which comprise the consolidated statement of financial position as at December 31, 2016 and 2015, and the consolidated statement of profit or loss, consolidated statement of cash flows for years then ended, and the notes to the consolidated financial statement.

Base on independent auditor's report, we think that the management uses its internal control well because the preparation and fair presentation of the consolidated financial statement in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). Good internal control avoids material misstatement of the financial statements.

Implementation of internal control in a company is doing well because in those reports the auditors evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates made significant management and overall presentation of the consolidated financial statement and the audit evidence obtained is sufficient and appropriate. So there is no limitation from the management.