Computer Associates 2010 Annual Report Download - page 53

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of the Company; (ii) 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 management and directors of the Company; and
(iii) 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 Company’s financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial
statement preparation and presentation. 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 conducted its evaluation of the effectiveness of internal control over financial reporting as of March 31, 2010
based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO). Management’s evaluation included the design of the Company’s internal control over
financial reporting and the operating effectiveness of the Company’s internal control over financial reporting. Based on that
evaluation, the Company’s management concluded that the Company’s internal control over financial reporting was effective
as of the end of the period covered by this report.
The Company’s independent registered public accounting firm, KPMG LLP, have audited the effectiveness of the Company’s
internal control over financial reporting as stated in their report which appears on page 52 of this Form 10-K.
(c) Changes in internal control over financial reporting
Except as disclosed in the following paragraph, there were no changes in the Company’s internal control over financial
reporting, as such term is defined in Rules 13a-15(f ) and 15d-15(f ) under the Exchange Act, that occurred during the most
recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s
internal control over financial reporting.
In the second quarter of fiscal year 2010, the Company began the migration of certain financial and sales processing systems
to an enterprise resource planning (ERP) system in its Europe, Middle East and Africa region. The changes in the Company’s
internal control over financial reporting associated with this ERP implementation continued during the fourth quarter of fiscal
year 2010.
Item 9B. Other information.
Not applicable
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