Canon 2008 Annual Report Download - page 97

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95
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The management of Canon is responsible for establishing and maintaining adequate internal control over fi nancial reporting.
Internal control over fi nancial reporting is defi ned in Rule 13a-15(f) promulgated under the Securities Exchange Act of 1934 , as
amended, as a process designed by, or under the supervision of, the company’s principal executive and principal fi nancial offi cers and
effected by the company’s board of directors, management and other personnel, to provide reasonable assurance regarding the
reliability of fi nancial reporting and the preparation of fi nancial statements for external purposes in accordance with generally accepted
accounting principles and includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable
detail accurately and fairly refl ect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of fi nancial 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 fi nancial statements.
Because of its inherent limitations, internal control over fi nancial 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.
Canon’s management assessed the effectiveness of internal control over fi nancial reporting as of December 31, 2008. In making this
assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in
Internal Control-Integrated Framework (the “COSO criteria”).
Based on its assessment, management concluded that, as of December 31, 2008, Canon’s internal control over fi nancial reporting
was effective based on the COSO criteria.
Canon’s independent registered public accounting fi rm, Ernst & Young ShinNihon LLC, has issued an audit report on the effectiveness
of our internal control over fi nancial reporting.