JP Morgan Chase 2008 Annual Report Download - page 130

Management’s report on internal control over financial reporting
128 JPMorgan Chase & Co./ 2008 Annual Report
Management has completed an assessment of the effectiveness of
the Firm’s internal control over financial reporting as of December 31,
2008. In making the assessment, management used the framework in
“Internal Control – Integrated Framework” promulgated by the
Committee of Sponsoring Organizations of the Treadway Commission,
commonly referred to as the “COSO” criteria.
Based upon the assessment performed, management concluded that
as of December 31, 2008, JPMorgan Chase’s internal control over
financial reporting was effective based upon the COSO criteria.
Additionally, based upon management’s assessment, the Firm deter-
mined that there were no material weaknesses in its internal control
over financial reporting as of December 31, 2008.
The effectiveness of the Firm’s internal control over financial reporting
as of December 31, 2008, has been audited by
PricewaterhouseCoopers LLP, an independent registered public
accounting firm, as stated in their report which appears herein.
James Dimon
Chairman and Chief Executive Officer
Michael J. Cavanagh
Executive Vice President and Chief Financial Officer
February 27, 2009
Management of JPMorgan Chase & Co. (“JPMorgan Chase” or the
“Firm”) is responsible for establishing and maintaining adequate
internal control over financial reporting. Internal control over financial
reporting is a process designed by, or under the supervision of, the
Firm’s principal executive and principal financial officers, or persons
performing similar functions, and effected by JPMorgan Chase’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 accor-
dance with accounting principles generally accepted in the United
States of America.
JPMorgan Chase’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 Firm’s assets; (2) provide reason-
able 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 Firm are being made only in accordance with authorizations of
JPMorgan Chase’s management and directors; and (3) provide rea-
sonable assurance regarding prevention or timely detection of unau-
thorized acquisition, use or disposition of the Firm’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 con-
ditions, or that the degree of compliance with the policies or proce-
dures may deteriorate.