JP Morgan Chase 2010 Annual Report Download - page 158

Management’s report on internal control over financial reporting
JPMorgan Chase & Co./2010 Annual Report
158
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 finan-
cial 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 accordance 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
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 Firm are being made only in accordance with
authorizations of JPMorgan Chase’s management and directors;
and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorized 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, projec-
tions 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 has completed an assessment of the effectiveness of
the Firm’s internal control over financial reporting as of December
31, 2010. In making the assessment, management used the
framework in “Internal Control – Integrated Framework” promul-
gated by the Committee of Sponsoring Organizations of the Tread-
way Commission, commonly referred to as the “COSO” criteria.
Based upon the assessment performed, management concluded
that as of December 31, 2010, JPMorgan Chase’s internal control
over financial reporting was effective based upon the COSO criteria.
Additionally, based upon management’s assessment, the Firm
determined that there were no material weaknesses in its internal
control over financial reporting as of December 31, 2010.
The effectiveness of the Firm’s internal control over financial
reporting as of December 31, 2010, 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
Douglas L. Braunstein
Executive Vice President and Chief Financial Officer
February 28, 2011