Unum 2006 Annual Report Download - page 114

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The Company’s management is responsible for designing, implementing, and maintaining adequate internal control
over financial reporting. The Company’s internal control over financial reporting encompasses the processes and
procedures management has established to (i) maintain records that, in reasonable detail, accurately and fairly reflect
the Company’s transactions and dispositions of assets; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in accordance with U.S. generally accepted
accounting principles; (iii) provide reasonable assurance that receipts and expenditures are appropriately authorized;
and (iv) 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 financial statements.
Management recognizes that there are inherent limitations in the effectiveness of internal control over financial
reporting, including the potential for human error or the circumvention or overriding of internal controls.
Accordingly, even effective internal control over financial reporting cannot provide absolute assurance with respect
to financial statement preparation. Because of such limitations, there is a risk that material misstatements may not
be prevented or detected on a timely basis by internal control over financial reporting. In addition, any projection of
the evaluation of effectiveness to future periods is 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 an assessment of the effectiveness of the Company’s internal control over financial
reporting based on criteria established in Internal Control – Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission and concluded that, as of December 31, 2006, the Company
maintained effective internal control over financial reporting.
The effectiveness of the Company’s internal control over financial reporting and management’s assessment of that
effectiveness, as of December 31, 2006, have been audited by Ernst & Young LLP, an independent registered public
accounting firm, as stated in their report which follows.