CVS 2011 Annual Report Download - page 48

Consolidated Statements of Operations
CVS CAREMARK 46 2011 ANNUAL REPORT
The Board of Directors and Shareholders
CVS Caremark Corporation
We have audited CVS Caremark Corporation’s internal control over financial reporting as of December 31, 2011,
based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organi-
zations of the Treadway Commission (the COSO criteria). CVS Caremark Corporation’s management is responsible for
maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal
control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial
Reporting. Our responsibility is to express an opinion on CVS Caremark Corporation’s internal control over financial
reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether
effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining
an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing
such other procedures as we considered necessary in the circumstances. We believe that our audit provides a
reasonable basis for our opinion.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles. A company’s internal control over financial reporting includes those policies
and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations
of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on
the financial statements.
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.
In our opinion, CVS Caremark Corporation maintained, in all material respects, effective internal control over
financial reporting as of December 31, 2011, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), the consolidated balance sheets of CVS Caremark Corporation as of December 31, 2011 and 2010 and the
related consolidated statements of income, shareholders’ equity and cash flows for each of the three years in the
period ended December 31, 2011 of CVS Caremark Corporation and our report dated February 17, 2012 expressed
an unqualified opinion thereon.
Boston, Massachusetts
February 17, 2012
Report of Independent Registered Public Accounting Firm
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