Honda 2008 Annual Report Download - page 110

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A n n u a l R e p o r t 2 0 0 8
108
The management of Honda is responsible for establishing and maintaining adequate internal control over financial
reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the U.S. Securities Exchange Act of 1934). The Company’s
internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with U.S. 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 reflect the transactions and dispositions of the assets of the Company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with U.S. 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 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 because the degree of compliance with policies or procedures may
deteriorate.
Our management, including our Chief Executive Officer and Chief Operating Officer for Business Management
Operations (who is our principal financial officer), assessed the effectiveness of internal control over financial reporting
as of March 31, 2008 based on the criteria established in “Internal Control-Integrated Framework” published by the
Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on that assessment, our
management concluded that our internal control over financial reporting was effective as of March 31, 2008.
The Company’s independent registered public accounting firm, KPMG AZSA & Co., has audited the effectiveness of
the Company’s internal control over financial reporting, as stated in their report which is included herein.
Takeo Fukui
Chief Executive Officer
Yoichi Hojo
Chief Operating Officer for Business Management Operations
June 30, 2008
Management’s Report on Internal Control over Financial Reporting