CVS 2004 Annual Report Download - page 28
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Please find page 28 of the 2004 CVS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Weare responsible for establishing and maintaining effective internal control over financial reporting. Our Company’s internal control
over financial reporting includes those policies and procedures that pertain to the Company’s ability to record, process, summarize
and report a system of internal accounting controls and procedures to provide reasonable assurance, at an appropriate cost/benefit
relationship, that the unauthorized acquisition, use or disposition of assets are prevented or timely detected and that transactions
are authorized, recorded and reported properly to permit the preparation of financial statements in accordance with GAAP and
receipt and expenditures are duly authorized. In order to ensure the Company’s internal control over financial reporting is effective,
management regularly assesses such controls and did so most recently for its financial reporting as of January 1, 2005.
We conduct an evaluation of the effectiveness of our internal controls over financial reporting based on the framework in Internal
Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. This evaluation
included review of the documentation, evaluation of the design effectiveness and testing of the operating effectiveness of controls.
Our system of internal control over financial reporting is enhanced by periodic reviews by our internal auditors and independent
registered public accounting firm, written policies and procedures and a written Code of Conduct adopted by our Company’s Board
of Directors, applicable to all employees of our Company. In addition, we have an internal Disclosure Committee, comprised of
management from each functional area within the Company, which performs a separate review of our disclosure control and
procedures. There are inherent limitations in the effectiveness of any system of internal controls over financial reporting.
Based on our evaluation, we conclude our Company’s internal control over financial reporting is effective and provide reasonable
assurance that assets are safeguarded and that the financial records are reliable for preparing financial statements as of January 1, 2005.
KPMG LLP, independent registered public accounting firm, is appointed by the Board of Directors and ratified by our Company’s
shareholders. They were engaged to render an opinion regarding the fair presentation of our consolidated financial statements as well
as conducting a review of the system of internal accounting controls. Their accompanying report is based upon an audit conducted
inaccordance with the Public Company Accounting Oversight Board (United States) and includes an attestation on management’s
assessment of internal controls over financial reporting.
March 8, 2005
Management’s Report on Internal Control Over Financial Reporting
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