Time Warner Cable 2010 Annual Report Download - page 135

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TIME WARNER CABLE 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, 2010 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, 2010, the Company’s internal control over financial reporting is effective based on the
specified criteria.
The Company’s internal control over financial reporting as of December 31, 2010 has been audited by the
Company’s independent auditor, Ernst & Young LLP, a registered public accounting firm, as stated in their report at
page 125 herein.
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