Travelers 2014 Annual Report Download - page 265

Table of Contents
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 U.S. 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 U.S. generally accepted accounting principles, and that 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 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.
Management has assessed the Company's internal control over financial reporting as of December 31, 2014. The standard measures adopted
by management in making its evaluation are the measures in the Internal Control—Integrated Framework (2013) 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 was effective at
December 31, 2014, 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 report on the effectiveness of the Company's internal control over financial reporting which follows this
report.
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