Baker Hughes 2004 Annual Report Download - page 86
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Please find page 86 of the 2004 Baker Hughes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.ChadC.Deaton
Chairmanand
ChiefExecutiveOfficer
Houston,Texas
February24,2005
G.StephenFinley
SeniorVicePresident–
FinanceandAdministration,
andChiefFinancialOfficer
AlanJ.Keifer
VicePresidentand
Controller
ITEM8.FINANCIALSTATEMENTSANDSUPPLEMENTARYDATA
Management’sReportonInternalControlOverFinancialReporting
Ourmanagementisresponsibleforestablishingandmaintainingadequateinternalcontroloverourfinancialreporting,assuch
termisdefinedinExchangeActRules13a-15(f).Ourinternalcontroloverfinancialreportingisaprocessdesignedtoproviderea-
sonableassuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesin
accordancewithgenerallyacceptedaccountingprinciples.Ourcontrolenvironmentisthefoundationforoursystemofinternalcon-
trolandisembodiedinourBusinessCodeofConduct,whichsetsthetoneofourcompanyandincludesourCoreValuesofInteg-
rity,Teamwork,PerformanceandLearning.Includedinoursystemofinternalcontrolarewrittenpolicies,anorganizationalstructure
providingdivisionofresponsibilities,theselectionandtrainingofqualifiedpersonnelandaprogramoffinancialandoperations
reviewsbyaprofessionalstaffofcorporateauditors.Ourinternalcontroloverfinancialreportingincludesthosepoliciesandproce-
duresthat(i)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accuratelyandfairlyreflecttheunderlyingtransac-
tions,includingtheacquisitionanddispositionofassets;(ii)providereasonableassurancethatourassetsaresafeguardedand
transactionsareexecutedinaccordancewithmanagement’sandourdirectors’authorizationandarerecordedasnecessarytoper-
mitpreparationofourfinancialstatementsinaccordancewithgenerallyacceptedaccountingprinciples;and(iii)providereasonable
assuranceregardingpreventionortimelydetectionofunauthorizedacquisition,use,ordispositionofourassetsthatcouldhavea
materialeffectonthefinancialstatements.
Underthesupervisionandwiththeparticipationofourmanagement,includingourprincipalexecutiveofficerandprincipal
financialofficer,weconductedanevaluationoftheeffectivenessofourinternalcontroloverfinancialreporting.Ourevaluationwas
basedontheframeworkinInternalControl–IntegratedFrameworkissuedbytheCommitteeofSponsoringOrganizationsofthe
TreadwayCommission.
BasedonourevaluationundertheframeworkinInternalControl–IntegratedFramework,ourprincipalexecutiveofficerandprin-
cipalfinancialofficerconcludedthatourinternalcontroloverfinancialreportingwaseffectiveasofDecember31,2004.Theconclu-
sionofourprincipalexecutiveofficerandprincipalfinancialofficerisbasedontherecognitionthatthereareinherentlimitationsinall
systemsofinternalcontrol.Becauseofitsinherentlimitations,internalcontroloverfinancialreportingmaynotpreventordetectmis-
statements.Also,projectionsofanyevaluationofeffectivenesstofutureperiodsaresubjecttotheriskthatcontrolsmaybecome
inadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.
Ourmanagement’sassessmentoftheeffectivenessofourinternalcontroloverfinancialreportingasofDecember31,2004
hasbeenauditedbyDeloitte&ToucheLLP,anindependentregisteredpublicaccountingfirm,asstatedintheirreportwhichis
includedherein.
36BakerHughesIncorporated