Computer Associates 2008 Annual Report Download - page 60

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE.
Not applicable.
ITEM 9A. CONTROLS AND PROCEDURES
(a) Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of the Company’s management, including the Chief Executive Officer
and Chief Financial Officer, the Company has evaluated the effectiveness of the design and operation of its disclosure
controls and procedures as required by the Securities Exchange Act of 1934 (Exchange Act) Rules 13a-15(e) or
15d-15(e) as of the end of the period covered by this annual report. Based on that evaluation, the Chief Executive
Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective.
(b) Management’s Report on Internal Control Over Financial Reporting
The Company’s management is responsible for establishing and maintaining adequate internal control over financial
reporting as defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company’s internal control over financial
reporting is 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 generally accepted accounting principles.
The Company’s internal control over financial reporting 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 the
assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial 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 effect on the Company’s financial
statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to
financial statement preparation and presentation. 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.
Management conducted its evaluation of the effectiveness of internal control over financial reporting as of March 31,
2008 based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). Management’s assessment included an evaluation of the design of
the Company’s internal control over financial reporting and testing the effectiveness of the Company’s internal control
over financial reporting. Based on that evaluation, the Company’s management concluded that the Company’s internal
control over financial reporting was effective as of March 31, 2008.
(c) Changes in Internal Control Over Financial Reporting
There were no changes in the Company’s internal control over financial reporting, as such term is defined in
Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that occurred during the most recently completed fiscal quarter
that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial
reporting.
The Company began the migration of certain financial and sales processing systems to an enterprise resource planning
(ERP) system at its North American operations in fiscal 2007. This change in information system platform for the
Company’s financial and operational systems is part of its on-going project to implement ERP at the Company’s facilities
worldwide. Additional changes are planned for fiscal 2009 and the Company will continue to monitor and test the
system as part of management’s annual evaluation of internal control over financial reporting.
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