Capital One 2011 Annual Report Download - page 151

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The management of Capital One Financial Corporation (the “Company” or “Capital One”) 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. Internal control over financial reporting is a process
designed by, or under the supervision of, the Company’s principal executive and principal financial officers, or
persons performing similar functions, 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 for external purposes in accordance with generally accepted accounting principles in the
United States of America.
Capital One’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 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 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.
Management completed an assessment of the effectiveness of the Company’s internal control over financial
reporting as of December 31, 2011, based on the framework in “Internal Control—Integrated Framework” issued
by the Committee of Sponsoring Organizations of the Treadway Commission, commonly referred to as the
“COSO” criteria.
Based on the assessment performed, management concluded that, as of December 31, 2011, the Company’s
internal control over financial reporting was effective based on the criteria established by COSO in “Internal
Control—Integrated Framework.” Additionally, based upon management’s assessment, the Company determined
that there were no material weaknesses in its internal control over financial reporting as of December 31, 2011.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2011, has been
audited by Ernst and Young LLP, an independent registered public accounting firm, as stated in their
accompanying report, which expresses an unqualified opinion on the effectiveness of the Company’s internal
control over financial reporting as of December 31, 2011.
/s/ R ICHARD D. F AIRBANK
Richard D. Fairbank
Chairman of the Board, Chief Executive Officer
and President
/s/ G ARY L. P ERLIN
Gary L. Perlin
Chief Financial Officer
February 28, 2012
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