CVS 2014 Annual Report Download - page 52

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CVS Health
50
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 proce-
dures 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 account-
ing 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, 2014.
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 (2013 Framework). 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 statements as of December 31, 2014.
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 audits conducted in accordance with the standards of the Public Company
Accounting Oversight Board (United States).
February 10, 2015