Home Shopping Network 2008 Annual Report Download - page 76

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
None.
ITEM 9A.(T) CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
We monitor and evaluate on an ongoing basis our disclosure controls and procedures in order to improve
their overall effectiveness. In the course of these evaluations, we modify and refine our internal processes as
conditions warrant.
Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the
effectiveness of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) promulgated under the
Exchange Act) as of December 31, 2008. Based on that evaluation, management has concluded that the disclosure
controls and procedures are effective to ensure that information required to be disclosed by us in the reports that we
file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods
specified in the SEC’s rules and forms, and to ensure that information is accumulated and communicated to our
management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosure.
Management’s Annual Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate “internal control over financial
reporting” (as defined in Rule 13a-15(f) under the Exchange Act) for the company. Our 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 accounting principles
generally accepted in the United States. Our management does not expect that our disclosure controls or our
internal controls over financial reporting will prevent or detect all errors and all fraud. A control system, no matter
how well designed and operated, can provide only reasonable, not absolute assurance, that the control system’s
objectives will be met. The design of a control system must reflect the fact that there are resource constraints and
the benefits of controls must be considered relative to their costs. The design of any system of controls is based in
part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will
succeed in achieving its stated goals under all potential future conditions. Over time, controls may become
inadequate because of changes in conditions or deterioration in the degree of compliance with policies or
procedures.
As required by Rule 13a-15(b) under the Exchange Act, our management evaluated the effectiveness of our
internal controls and procedures (as defined by Rule 13a-15(e) and 15d-15(e) under the Exchange Act). In making
this assessment, our management used the criteria for effective internal control over financial reporting described in
“Intern Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based upon that evaluation, we concluded that as December 31, 2008, our internal control over
financial reporting was effective.
This annual report does not include an attestation report of our registered public accounting firm regarding
internal control over financial reporting. Management’s report was not subject to attestation by our registered public
accounting firm pursuant to temporary rules of the SEC that permit the company to provide only management’s
report in this annual report.
Changes in Internal Control Over Financial Reporting
We regularly monitor and evaluate on an ongoing basis our internal control over financial reporting in
order to improve its effectiveness. In the course of these evaluations, we modify and refine our internal processes as