According to the New York Times, a spokeswoman for Microsoft commented on the matter saying “The Daily story is based on inaccurate rumors and speculation. We have no further comment.”
Additionally, Mary-Jo Foley of All About Microsoft notes that:
A Microsoft spokesperson said the screen shot accompanying The Daily’s story is not a real picture of a Microsoft software product. But the spokesperson also said Microsoft is declining to comment as to whether or not the company has developed a version of Office for the iPad and/or when such a product may come to market.
So we’re back to square one. We don’t know what, when, and if Microsoft will ever bring Office to the iPad. In the meantime, you can always use third party services such as OnLive and CloudOn to create and edit Office documents on the go.
UPDATE: Well, this story keeps on going. Peter Ha from The Daily confirms that they indeed saw a working version of Office for iPad. He also shows an image very much incriminating. So yes, Microsoft is indeed working on Office for iPad. they just want to play an Apple on us and try to keep it a secret.