Goldman Sachs 2007 Annual Report Download - page 86

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Management’s Report on Internal Control over Financial Reporting
Our internal control over financial reporting includes policies
and procedures that pertain to the maintenance of records that,
in reasonable detail, accurately and fairly reflect transactions
and dispositions of assets; provide reasonable assurances that
transactions are recorded as necessary to permit preparation of
financial statements in accordance with U.S. generally accepted
accounting principles, and that receipts and expenditures
are being made only in accordance with authorizations of
management and the directors of the firm; and provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of the firm’s assets
that could have a material effect on our financial statements.
The firm’s internal control over financial reporting as of
November 30, 2007 has been audited by PricewaterhouseCoopers LLP,
an independent registered public accounting firm, as stated
in their report appearing on page 85, which expresses an
unqualified opinion on the effectiveness of the firm’s internal
control over financial reporting as of November 30, 2007.
Management of The Goldman Sachs Group, Inc., together
with its consolidated subsidiaries (the firm), is responsible for
establishing and maintaining adequate internal control over
financial reporting. The firm’s internal control over financial
reporting is a process designed under the supervision of the
firm’s principal executive and principal financial officers to
provide reasonable assurance regarding the reliability of
financial reporting and the preparation of the firm’s financial
statements for external reporting purposes in accordance with
U.S. generally accepted accounting principles.
As of the end of the firm’s 2007 fiscal year, management
conducted an assessment of the effectiveness of the firm’s
internal control over financial reporting based on the framework
established in Internal Control
—
Integrated Framework issued
by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO). Based on this assessment,
management has determined that the firm’s internal control over
financial reporting as of November 30, 2007 was effective.
84 Goldman Sachs 2007 Annual Report