Chevron 2011 Annual Report Download - page 32

30 Chevron Corporation 2011 Annual Report30 Chevron Corporation 2011 Annual Report
Report of Independent Registered Public Accounting Firm
management, and evaluating the overall nancial statement
presentation. Our audit of internal control over nancial
reporting included obtaining an understanding of internal
control over nancial reporting, assessing the risk that a
material weakness exists, and testing and evaluating the
design and operating eectiveness 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.
A company’s internal control over nancial reporting is
a process designed to provide reasonable assurance regarding
the reliability of nancial reporting and the preparation of
nancial statements for external purposes in accordance
with generally accepted accounting principles. A company’s
internal control over nancial reporting includes those policies
and procedures that (i) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reect the
transactions and dispositions of the assets of the company;
(ii) provide reasonable assurance that transactions are recorded
as necessary to permit preparation of nancial 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 eect on the nancial
statements.
Because of its inherent limitations, internal control over
nancial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of eectiveness 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.
San Francisco, California
February 23, 2012
To the Stockholders and the Board of Directors of Chevron Corporation:
In our opinion, the accompanying consolidated balance
sheet and the related consolidated statements of income,
comprehensive income, equity and of cash ows present
fairly, in all material respects, the nancial position of
Chevron Corporation and its subsidiaries at December 31,
2011, and December 31, 2010, and the results of their
operations and their cash ows for each of the three years
in the period ended December 31, 2011, in conformity
with accounting principles generally accepted in the United
States of America. Also in our opinion, the Company
maintained, in all material respects, eective internal control
over nancial reporting as of December 31, 2011, based on
criteria established in Internal Control – Integrated Framework
issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO). e Company’s
management is responsible for these nancial statements,
for maintaining eective internal control over nancial
reporting, and for its assessment of the eectiveness of
internal control over nancial reporting, included in the
accompanying Management’s Report on Internal Control
Over Financial Reporting. Our responsibility is to express
opinions on these nancial statements and on the Company’s
internal control over nancial reporting based on our
integrated audits. We conducted our audits in accordance
with the standards of the Public Company Accounting
Oversight Board (United States). ose standards require
that we plan and perform the audits to obtain reasonable
assurance about whether the nancial statements are free of
material misstatement and whether eective internal control
over nancial reporting was maintained in all material
respects. Our audits of the nancial statements included
examining, on a test basis, evidence supporting the amounts
and disclosures in the nancial statements, assessing the
accounting principles used and signicant estimates made by