Support.com 2006 Annual Report Download - page 75

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURES.
None.
ITEM 9A. CONTROLS AND PROCEDURES.
Disclosure controls and procedures.
We maintain “disclosure controls and procedures,” as such term is defined in Rule 13a−15(e) under the Securities Exchange Act of
1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports that we file or submit
under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in Securities and
Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including
our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In
designing and evaluating our disclosure controls and procedures, management recognized that disclosure controls and procedures, no
matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure
controls and procedures are met. Our disclosure controls and procedures have been designed to meet reasonable assurance standards.
Additionally, in designing disclosure controls and procedures, our management necessarily was required to apply its judgment in
evaluating the cost−benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and
procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any
design will succeed in achieving its stated goals under all potential future conditions. As described below in our management’s report
on internal control over financial reporting, we have identified a material weakness in our internal control over financial reporting,
relating to our accounting for our international operations. Therefore, our chief executive officer and chief financial officer concluded
that our disclosure controls and procedures were not effective as of December 31, 2006.
Changes in Internal Control over Financial Reporting
Other than the material weakness noted below there was no significant change in our internal control over financial reporting that
occurred during the fourth quarter of 2006 that has materially affected, or is reasonably likely to materially affect, our internal control
over financial reporting.
Report of Management on Internal Control over Financial Reporting.
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is
defined in Exchange Act Rules 13a−15(f). Our internal control system is designed to provide reasonable assurance to our management
and Board of Directors regarding the preparation and fair presentation of published financial statements. All internal control systems,
no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only
reasonable assurance with respect to financial statement preparation and presentation.
Under the supervision and with the participation of our management, including our chief executive officer and chief financial
officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in
Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. As part
of this evaluation, management established an internal control project team, engaged outside consultants and adopted a project work
plan to document and assess the adequacy of our internal control over financial reporting, address any control deficiencies that were
identified, and to validate through testing that the controls are functioning as documented.
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Source: SUPPORTSOFT INC, 10−K, March 16, 2007