AIG 2010 Annual Report Download - page 391

American International Group, Inc., and Subsidiaries
Part II
ITEM 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
None.
ITEM 9A. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports
filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time
periods specified in SEC rules and forms and that such information is accumulated and communicated to
management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions
regarding required disclosures. In connection with the preparation of this Annual Report on Form 10-K, an
evaluation was carried out by AIG management, with the participation of AIG’s Chief Executive Officer and Chief
Financial Officer, of the effectiveness of AIG’s disclosure controls and procedures (as defined in Rules 13a-15(e)
and 15d-15(e) under the Securities Exchange Act of 1934 (Exchange Act)) as of December 31, 2010. Based on this
evaluation, AIG’s Chief Executive Officer and Chief Financial Officer concluded that AIG’s disclosure controls
and procedures were effective as of December 31, 2010.
Management’s Report on Internal Control Over Financial Reporting
Management of AIG is responsible for establishing and maintaining adequate internal control over financial
reporting. AIG’s internal control over financial reporting is a process, under the supervision of AIG’s Chief
Executive Officer and Chief Financial Officer, designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of AIG’s financial statements for external purposes in accordance with
U.S. GAAP.
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.
AIG management conducted an assessment of the effectiveness of AIG’s internal control over financial
reporting as of December 31, 2010 based on the criteria established in Internal Control — Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In conducting this
assessment, AIG management excluded Fuji because AIG acquired a controlling interest in Fuji in 2010. Fuji’s
total assets constitute approximately $13.7 billion or 2 percent of AIG’s total consolidated assets at December 31,
2010 and less than 2 percent of AIG’s consolidated revenues for the year ended December 31, 2010.
AIG management has concluded that, as of December 31, 2010, AIG’s internal control over financial reporting
was effective based on the criteria articulated in Internal Control — Integrated Framework issued by the COSO.
The effectiveness of AIG’s internal control over financial reporting as of December 31, 2010 has been audited by
PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report, which is
included in this Annual Report on Form 10-K.
Changes in Internal Control over Financial Reporting
There have been no changes in AIG’s internal control over financial reporting that have occurred during the
quarter ended December 31, 2010 that have materially affected, or is reasonably likely to materially affect, AIG’s
internal control over financial reporting.
AIG 2010 Form 10-K 375