Capital One 2007 Annual Report Download - page 134

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112
MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management of Capital One Financial Corporation (the Company) is responsible for establishing and maintaining adequate internal
control over financial reporting and for the assessment of the effectiveness of internal control over financial reporting. As defined by
the SEC, internal control over financial reporting is a process designed under the supervision of the Companys principal executive
and principal financial officer, and effected by the companys board of directors, management and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with
generally accepted accounting principles.
The Companys internal control over financial reporting is supported by written 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 Companys
assets; (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 the Companys management and directors; 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 their inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. 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.
Management of the Company conducted an assessment of the effectiveness of the Companys internal control over financial reporting
as of December 31, 2007 based on criteria established in Internal ControlIntegrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission (the COSO Framework). Based on this assessment, management has
concluded that the Companys internal control over financial reporting was effective as of December 31, 2007.
Our independent registered public accounting firm, Ernst and Young LLP, has independently assessed the effectiveness of the
Companys internal control over financial reporting. A copy of their report is included in Part 8 of this annual report on Form 10-K.
/s/ RICHARD D. FAIRBANK
/s/ GARY L. PERLIN
Chairman and Chief Executive Officer Chief Financial Officer