American Express 2008 Annual Report Download - page 64

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[ 62 ]
management’s report on internal control over financial reporting
american express company
management’s report on
internal control over
financial reporting
The management of American Express Company (the
Company) is responsible for establishing and maintaining
adequate internal control over financial reporting.
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 in the United States of America,
and includes those policies and procedures that:
• Pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company;
• 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
• 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.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
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.
The Company’s management assessed the effectiveness of
the Company’s internal control over financial reporting as of
December 31, 2008. In making this assessment, the Company’s
management used the criteria set forth by the Committee
of Sponsoring Organizations of the Treadway Commission
(COSO) in Internal Control — Integrated Framework.
Based on management’s assessment and those criteria, we
conclude that, as of December 31, 2008, the Company’s internal
control over financial reporting is effective.
PricewaterhouseCoopers LLP, the Company’s independent
registered public accounting firm, has issued an attestation
report appearing on the following page on the effectiveness of
the Company’s internal control over financial reporting as of
December 31, 2008.
62