Toyota 2011 Annual Report Download - page 110

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Financial Section and
Investor Information
Business and
Performance Review
Special FeatureMessage/Vision
Management and
Corporate Information
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:
1) pertain to the maintenance of records that in reasonable detail, accurately and fairly reflect the
transactions and dispositions of Toyota’s assets;
2) 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 authorizations of Toyota’s management and directors; and
3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisi-
tion, 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 compli-
ance 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, 2011.
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, 2011, as stated in its report included herein.
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TOYOTA ANNUAL REPORT 2011