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CVS CAREMARK 2012 ANNUAL REPORT
49
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 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 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, 2012.
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, 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 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
reasonable assurance that assets are safeguarded and that the financial records are reliable for preparing financial state-
ments as of December 31, 2012.
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 reports
are based upon an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board
(United States).
February 15, 2013