Financial Audit

In Price Waterhouse's opinion, SEMATECH's 1993 financial statements are fairly presented in all material respects in conformance with generally accepted accounting principles. Also, Price Waterhouse reported no material internal control weaknesses or noncompliance with laws and regulations. Price Waterhouse also issued a management letter making recommendations that, although not material to the financial statements, were intended to improve SEMATECH's management efficiency and enhance its internal control structure. GAO found no indication during its review that Price Waterhouse's opinion on SEMATECH's 1993 financial statements, its report on internal control structure, or its report on compliance with laws and regulations cannot be relied upon.

GAO found that: (1) the SEMATECH 1993 financial statements were fairly presented in conformance with generally accepted accounting principles; (2) there were no material internal control weaknesses or noncompliance with applicable laws and regulations; (3) the auditor, in conformity with generally accepted auditing standards, issued a management letter containing recommendations on how to improve SEMATECH's management efficiency and enhance its internal control structure; and (4) there was no indication that the auditor's opinion on SEMATECH's 1993 financial statements, report on the internal control structure, or compliance with laws and regulations could not be relied upon.