Sears 2015 Annual Report Download - page 121

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MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The management of Sears Holdings Corporation 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 Company's principal executive and principal financial officers and effected by the Company'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 generally
accepted accounting principles and includes those policies and procedures that:
• pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the
transactions and dispositions of the assets of the Company;
• 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 Company are being made only in accordance with authorizations of management
and directors of the Company; and
• 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 inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks 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 effectiveness of the Company's internal control over financial reporting at
January€30, 2016. In making its assessment, management used the criteria set forth in the Internal Control -
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
("COSO"). The assessment included the documentation and understanding of the Company's internal control over
financial reporting. Management evaluated the design effectiveness and tested the operating effectiveness of internal
controls over financial reporting to form its conclusion.
Based on this evaluation, management concluded that, at January€30, 2016, the Company's internal control
over financial reporting is effective to provide reasonable assurance that the Company's financial statements are
fairly presented in conformity with generally accepted accounting principles.
Deloitte€& Touche LLP, independent registered public accounting firm, has reported on the effectiveness of the
Company's internal control over financial reporting at January€30, 2016, as stated in their report included herein.
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