Time Magazine 2009 Annual Report Download - page 141

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TIME WARNER INC.
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 such term is defined in Rule 13a-15(f) under the Exchange Act). 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 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
(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.
Internal control over financial reporting is designed to provide reasonable assurance to the Company’s
management and board of directors regarding the preparation of reliable financial statements for external
purposes in accordance with generally accepted accounting principles. Internal control over financial reporting
includes self-monitoring mechanisms and actions taken to correct deficiencies as they are identified. Because of the
inherent limitations in any internal control, no matter how well designed, misstatements may occur and not be
prevented or detected. Accordingly, even effective internal control over financial reporting can provide only
reasonable assurance with respect to financial statement preparation. Further, the evaluation of the effectiveness of
internal control over financial reporting was made as of a specific date, and continued effectiveness in future periods
is subject to the risks that controls may become inadequate because of changes in conditions or that the degree of
compliance with the policies and procedures may decline.
Management conducted an evaluation of the effectiveness of the Company’s system of internal control over
financial reporting as of December 31, 2009 based on the framework set forth in “Internal Control — Integrated
Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on its
evaluation, management concluded that, as of December 31, 2009, the Company’s internal control over financial
reporting is effective based on the specified criteria.
The effectiveness of the Company’s internal control over financial reporting has been audited by the
Company’s independent auditor, Ernst & Young LLP, a registered public accounting firm, as stated in their
report at page 131 herein.
129