AIG 2011 Annual Report Download - page 384

American International Group, Inc.
Part II
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports
filed or submitted under the Securities Exchange Act of 1934 (the Exchange Act) is recorded, processed,
summarized and reported within the time periods specified in SEC rules and forms and that such information is
accumulated and communicated to management, including the Chief Executive Officer and Chief Financial
Officer, to allow timely decisions regarding required disclosures. In connection with the preparation of this Annual
Report on Form 10-K, an evaluation was carried out by AIG management, with the participation of AIG’s Chief
Executive Officer and Chief Financial Officer, of the effectiveness of AIG’s disclosure controls and procedures (as
defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of December 31, 2011). Based on this
evaluation, AIG’s Chief Executive Officer and Chief Financial Officer concluded that AIG’s disclosure controls
and procedures were effective as of December 31, 2011.
Management of AIG is responsible for establishing and maintaining adequate internal control over financial
reporting. AIG’s internal control over financial reporting is a process, under the supervision of AIG’s Chief
Executive Officer and Chief Financial Officer, designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of AIG’s financial statements for external purposes in accordance with
U.S. GAAP.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
AIG management conducted an assessment of the effectiveness of AIG’s internal control over financial
reporting as of December 31, 2011 based on the criteria established in Internal Control — Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
AIG management has concluded that, as of December 31, 2011, AIG’s internal control over financial reporting
was effective based on the criteria articulated in Internal Control — Integrated Framework issued by the COSO.
The effectiveness of AIG’s internal control over financial reporting as of December 31, 2011 has been audited by
PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report, which is
included in this Annual Report on Form 10-K.
AIG continues its implementation of new technology solutions, which began in 2010, to mitigate the reliance on
manual controls and to improve its internal controls relating to the period-end financial reporting and
consolidation process, income taxes and reporting for non-standard transactions. As a result, AIG has updated its
internal controls to accommodate the modifications to its business processes and accounting procedures. AIG has
evaluated the effect on its internal control over financial reporting of this implementation for the quarter ended
December 31, 2011, and determined that this conversion has not materially affected, and is not reasonably likely
to materially affect, AIG’s internal control over financial reporting. There have been no other changes in AIG’s
internal control over financial reporting that have occurred during the quarter ended December 31, 2011 that have
materially affected, or are reasonably likely to materially affect, AIG’s internal control over financial reporting.
370 AIG 2011 Form 10-K
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING