Aetna 2013 Annual Report Download - page 147

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Annual Report- Page 141
Management's Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting
(“ICOFR”) for the Company. ICOFR is defined as 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 GAAP.
Our ICOFR process 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 our assets; (ii) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of the consolidated financial statements
in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with
authorizations of our management and directors; and (iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our
consolidated financial statements.
Because of its inherent limitations, ICOFR 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.
Under the supervision and with the participation of management, including our Chief Executive and Chief Financial
Officers, management assessed the effectiveness of our ICOFR at December 31, 2013. In making this assessment,
management used the framework set forth by the Committee of Sponsoring Organizations of the Treadway
Commission in “Internal Control - Integrated Framework” (1992). Based on this assessment, management
concluded that our ICOFR was effective at December 31, 2013. Our ICOFR as well as our consolidated financial
statements have been audited by KPMG LLP, an independent registered public accounting firm, as stated in their
report which is included on page 142.
Management's Responsibility for Financial Statements
Management is responsible for our consolidated financial statements, which have been prepared in accordance with
GAAP. Management believes the consolidated financial statements, and other financial information included in this
report, fairly present in all material respects our financial position, results of operations and cash flows as of and for
the periods presented in this report.
The financial statements are the product of a number of processes that include the gathering of financial data
developed from the records of our day-to-day business transactions. Informed judgments and estimates are used for
those transactions not yet complete or for which the ultimate effects cannot be measured precisely. We emphasize
the selection and training of personnel who are qualified to perform these functions. In addition, our personnel are
subject to rigorous standards of ethical conduct that are widely communicated throughout the organization.
The Audit Committee of Aetna's Board of Directors engages KPMG LLP, an independent registered public
accounting firm, to audit our consolidated financial statements and express their opinion thereon. Members of that
firm also have the right of full access to each member of management in conducting their audits. The report of
KPMG LLP on their audit of our consolidated financial statements appears on page 142.
Audit Committee Oversight
The Audit Committee of Aetna's Board of Directors is comprised solely of independent directors. The Audit
Committee meets regularly with management, our internal auditors and KPMG LLP to oversee and monitor the
work of each and to inquire of each as to their assessment of the performance of the others in their work relating to
our consolidated financial statements and ICOFR. Both KPMG LLP and our internal auditors have, at all times, the
right of full access to the Audit Committee, without management present, to discuss any matter they believe should
be brought to the attention of the Audit Committee.