AIG 2009 Annual Report Download - page 200

American International Group, Inc., and Subsidiaries
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of American International Group, Inc.:
In our opinion, the consolidated financial statements listed in the accompanying index present fairly, in all material
respects, the financial position of American International Group, Inc. and its subsidiaries (AIG) at December 31, 2009
and 2008, and the results of their operations and their cash flows for each of the three years in the period ended
December 31, 2009 in conformity with accounting principles generally accepted in the United States of America. In
addition, in our opinion, the financial statement schedules listed in the accompanying index present fairly, in all
material respects, the information set forth therein when read in conjunction with the related consolidated financial
statements. Also in our opinion, AIG maintained, in all material respects, effective internal control over financial
reporting as of December 31, 2009, based on criteria established in Internal Control — Integrated Framework issued by
the Committee of Sponsoring Organizations of the Treadway Commission (COSO). AIG’s management is responsible
for these financial statements and financial statement schedules, for maintaining effective internal control over
financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in
Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A. Our responsibility is
to express opinions on these financial statements, on the financial statement schedules, and on AIG’s internal control
over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of
the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement
and whether effective internal control over financial reporting was maintained in all material respects. Our audits of
the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included
obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.
Our audits also included performing such other procedures as we considered necessary in the circumstances. We
believe that our audits provide a reasonable basis for our opinions.
As described in Note 1 to the consolidated financial statements, AIG changed the manner in which it accounts for
other-than-temporary impairments of fixed maturity securities as of April 1, 2009, as well as the classification of
non-controlling interests in partially owned consolidated subsidiaries as of January 1, 2009. Also, as of January 1, 2008,
AIG adopted a new framework for measuring fair value and elected an option to report selected financial assets and
liabilities at fair value. Also, on January 1, 2007 AIG changed the manner in which it accounts for internal
replacements of certain insurance and investment contracts, uncertainty in income taxes, and changes or projected
changes in the timing of cash flows relating to income taxes generated by leveraged lease transactions.
As discussed in Note 1 to the consolidated financial statements, AIG has received substantial financial support from the
Federal Reserve Bank of New York and the United States Department of the Treasury. AIG is dependent upon the
continued financial support of the U.S. government.
A company’s 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 generally accepted accounting principles. A 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.
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.
/s/ PricewaterhouseCoopers
New York, New York
February 26, 2010
AIG 2009 Form 10-K 192