International Paper 2012 Annual Report Download - page 118

ITEM 9. CHANGES IN AND DISAGREEMENTS
WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
EVALUATION OF CONTROLS AND PROCEDURES
We maintain disclosure controls and procedures that
are designed to ensure that information required to
be disclosed by us in the reports we file or submit
under the Securities and Exchange Act of 1934, as
amended (the “Exchange Act”), is recorded, proc-
essed, summarized and reported within the time
periods specified in the SEC’s rules and forms, and
that such information is accumulated and communi-
cated to management, including our principal execu-
tive officer and principal financial officer, as
appropriate, to allow timely decisions regarding
required disclosure. As of December 31, 2012, an
evaluation was carried out under the supervision and
with the participation of the Company’s manage-
ment, including our principal executive officer and
principal financial officer, of the effectiveness of our
disclosure controls and procedures, as defined by
Rule 13a-15 under the Exchange Act. Based upon
this evaluation, our principal executive officer and
principal financial officer have concluded that the
Company’s disclosure controls and procedures were
effective as of December 31, 2012.
MANAGEMENT’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING
Our management is responsible for establishing and
maintaining adequate internal control over our
financial reporting. Internal control over financial
reporting is the process designed by, or under the
supervision of, our principal executive officer and
principal financial officer, and effected by our Board
of Directors, management and other personnel, to
provide reasonable assurance regarding the reli-
ability of financial reporting and the preparation of
financial statements for external purposes in
accordance with accounting principles generally
accepted in the United States (GAAP). Our internal
control over financial reporting includes those poli-
cies and procedures that:
• pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect
the transactions and dispositions of our assets;
• provide reasonable assurance that transactions
are recorded as necessary to allow for the
preparation of financial statements in accord-
ance with GAAP, and that our receipts and
expenditures are being made only in accordance
with authorizations of our management and
directors;
• provide reasonable assurance regarding pre-
vention or timely detection of unauthorized
acquisition, use or disposition of our assets that
could have a material effect on our consolidated
financial statements; and
• provide reasonable assurance as to the
detection of fraud.
All internal control systems have inherent limi-
tations, including the possibility of circumvention
and overriding of controls, and therefore can provide
only reasonable assurance of achieving the designed
control objectives. The Company’s internal control
system is supported by written policies and proce-
dures, contains self-monitoring mechanisms, and is
audited by the internal audit function. Appropriate
actions are taken by management to correct
deficiencies as they are identified.
As of December 31, 2012, management has assessed
the effectiveness of the Company’s internal control
over financial reporting. In a report included on
pages 43 and 44, management concluded that the
Company’s internal control over financial reporting
was effective as of December 31, 2012.
In making this assessment, we used the criteria
described in “Internal Control – Integrated Frame-
work” issued by the Committee of Sponsoring
Organizations of the Treadway Commission.
Our independent registered public accounting firm,
Deloitte & Touche LLP, with direct access to our
Board of Directors through our Audit and Finance
Committee, has audited the consolidated financial
statements prepared by us. Their report on the con-
solidated financial statements is included in Part II,
Item 8 of this Annual Report under the heading
“Financial Statements and Supplementary Data”.
Deloitte & Touche LLP has issued an attestation
report on our internal control over financial report-
ing.
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