Polaris 2008 Annual Report Download - page 52

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Item 8. Financial Statements and Supplementary Data
Management’s Report on Company’s Internal Control over Financial Reporting
Management is responsible for establishing and maintaining an adequate system of internal control over
financial reporting of the Company. This system is designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
United States generally accepted accounting principles.
The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets 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 prin-
ciples, and that receipts and expenditures of the Company are being made only in accordance with authorizations of
management and directors of the Company; (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 financial statements.
Because of its inherent limitations, internal control over financial reporting can only provide reasonable
assurance and 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 that
the degree of compliance with the policies or procedures may deteriorate.
Management conducted an evaluation of the effectiveness of the system of internal control over financial
reporting as of December 31, 2008. In making this evaluation, management used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control — Integrated
Framework. Based on management’s evaluation and those criteria, management concluded that the Company’s
system of internal control over financial reporting was effective as of December 31, 2008.
Management’s internal control over financial reporting as of December 31, 2008 has been audited by Ernst &
Young LLP, an independent registered public accounting firm, as stated in their report in which they expressed an
unqualified opinion, which report appears on the following page.
Scott W. Wine
Chief Executive Officer
Michael W. Malone
Vice President of Finance,
Chief Financial Officer and Secretary
February 26, 2009
Further discussion of the Company’s internal controls and procedures is included in Item 9A of this report,
under the caption “Controls and Procedures.”
34