CVS 2010 Annual Report Download - page 47

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Management’s Report on Internal Control
Over Financial Reporting
We are responsible for establishing and maintaining adequate 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 appropri-
ate 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 generally accepted accounting principles (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 December 31, 2010.
We conducted an assessment of the effectiveness of our internal controls over financial reporting based on the criteria set forth
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, written policies and procedures and a written Code of Conduct adopted by our Company’s Board of Directors, appli-
cable 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 controls and procedures. There
are inherent limitations in the effectiveness of any system of internal controls over financial reporting.
Based on our assessment, we conclude our Company’s internal control over financial reporting is effective and provides reason-
able assurance that assets are safeguarded and that the financial records are reliable for preparing financial statements as of
December 31, 2010.
Ernst & Young 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 an audit of internal control over financial reporting. Their accompanying report is based upon
an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States).
February 18, 2011
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