Chevron 2013 Annual Report Download - page 31

Chevron Corporation 2013 Annual Report 29
Report of Independent Registered Public Accounting Firm
the accounting principles used and signicant estimates
made by 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 21, 2014
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, 2013, and December 31, 2012, and the results of their
operations and their cash ows for each of the three years
in the period ended December 31, 2013, 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, 2013,
based on criteria established in Internal Control – Integrated
Framework (1992) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). e
Company’s management is responsible for these nancial
statements and nancial statement schedule, 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, on the nancial statement schedule, 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