ServiceMagic 2012 Annual Report Download - page 113

Table of Contents
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
Not applicable.
Item 9A. Controls and Procedures
Conclusion Regarding the Effectiveness of the Company's Disclosure Controls and Procedures
The Company monitors and evaluates on an ongoing basis its disclosure controls and procedures in order to improve their overall
effectiveness. In the course of these evaluations, the Company modifies and refines its internal processes as conditions warrant.
As required by Rule 13a-15(b) of the Exchange Act, IAC management, including the Chairman and Senior Executive, the Chief Executive
Officer and the Chief Financial Officer, conducted an evaluation, as of the end of the period covered by this report, of the effectiveness of the
Company's disclosure controls and procedures as defined in Exchange Act Rule 13a-15(e). Based on this evaluation, the Chairman and Senior
Executive, the Chief Executive Officer and the Chief Financial Officer concluded that the Company's disclosure controls and procedures were
effective as of the end of the period covered by this report.
Management's Report on Internal Control Over Financial Reporting
Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting (as defined
in Rule 13a-15(f) under the Exchange Act) for the Company. The Company'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 accounting principles generally accepted in the United States. Management assessed the effectiveness of the Company's internal
control over financial reporting as of December 31, 2012. In making this assessment, our management used the criteria for effective internal
control over financial reporting described in "Internal Control—
Integrated Framework" issued by the Committee of Sponsoring Organizations of
the Treadway Commission. Based on this assessment, management has determined that, as of December 31, 2012, the Company's internal
control over financial reporting is effective. The effectiveness of our internal control over financial reporting as of December 31, 2012 has been
audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their attestation report, included herein.
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 conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
Changes in Internal Control Over Financial Reporting
The Company monitors and evaluates on an ongoing basis its internal control over financial reporting in order to improve its overall
effectiveness. In the course of these evaluations, the Company modifies and refines its internal processes as conditions warrant. As required by
Rule 13a-15(d), IAC management, including the Chairman and Senior Executive, the Chief Executive Officer and the Chief Financial Officer,
also conducted an evaluation of the Company's internal control over financial reporting to determine whether any changes occurred during the
quarter ended December 31, 2012 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over
financial reporting. Based on that evaluation, there has be no such change during the quarter ended December 31, 2012.
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