Toyota 2008 Annual Report Download - page 134

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132 TOYOTA •Annual Report 2008 •
Financial Section
Management’s Annual Report on Internal Control over Financial Reporting
Toyota’s management is responsible for establishing and maintaining effective internal control over financial reporting. 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 U.S. GAAP. Toyota’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 disposi-
tions of Toyota’s assets;
(ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with U.S. GAAP, and that Toyota’s receipts and expenditures are being made only in accordance with autho-
rizations of Toyota’s management and directors; and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of
Toyota’s assets that could have a material effect on the financial statements.
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.
Toyota’s management conducted an evaluation of the effectiveness of 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.
Based on this evaluation, management concluded that Toyota’s internal control over financial reporting was effective as of
March 31, 2008.
PricewaterhouseCoopers Aarata, an independent registered public accounting firm that audited the consolidated financial
statements included in this report, has also audited the effectiveness of Toyota’s internal control over financial reporting as of
March 31, 2008, as stated in its report included herein.