Travelers 2004 Annual Report Download - page 210

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. The Company’s internal control over financial reporting is designed to provide reasonable
assurances regarding the reliability of financial reporting and the preparation of the consolidated financial
statements of the Company in accordance with generally accepted accounting principles. The Company’s
accounting policies and internal controls over financial reporting, established and maintained by management,
are under the general oversight of the Company’s Audit Committee.
The Company’s internal control over financial reporting includes those policies and procedures that:
• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the Company;
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that our receipts
and expenditures are being made only in accordance with authorizations of the Company’s management
and directors; and
• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use
or disposition of our 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 or compliance with the
policies or procedures may deteriorate.
Management has assessed the Company’s internal control over financial reporting as of December 31, 2004.
The standard measures adopted by management in making its evaluation are the measures in the Internal-Control
Integrated Framework published by the Committee of Sponsoring Organizations of the Treadway Commission.
Based upon its assessment, management has concluded that the Company’s internal control over financial
reporting is effective at December 31, 2004, and that there were no material weaknesses in the Company’s
internal control over financial reporting as of that date.
KPMG LLP, an independent registered public accounting firm, which has audited and reported on the
consolidated financial statements contained in this Form 10-K, has issued its written attestation report on
management’s assessment of the Company’s internal control over financial reporting which follows this report.
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