PG&E 2015 Annual Report Download - page 125

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117
PART II
ITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Management’s Report on Internal Control Over Financial Reporting
Management of PG&E Corporation and Utility is responsible for establishing and maintaining adequate internal
control over financial reporting. PG&E Corporation’s and the Utility’s internal control over financial reporting is a
process designed 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, or GAAP.
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 assets of
PG&E Corporation and the Utility, (2) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with GAAP and that receipts and expenditures are being
made only in accordance with authorizations of management and directors of PG&E Corporation and the Utility, and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of assets that could have a material eect 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 eectiveness 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 assessed the eectiveness of internal control over financial reporting as of December 31, 2015, based
on the criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on its assessment and those criteria, management has
concluded that PG&E Corporation and the Utility maintained eective internal control over financial reporting as of
December31, 2015.
Deloitte & Touche LLP, an independent registered public accounting firm, has audited PG&E Corporation’s and the
Utility’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control—
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.