Intel 2003 Annual Report Download - page 93

Table of Contents
Index to Financial Statements
Not applicable.
Controls Evaluation and Related CEO and CFO Certifications
We conducted an evaluation of the effectiveness of the design and operation of our “disclosure controls and procedures” (Disclosure
Controls) as of the end of the period covered by this Annual Report. The controls evaluation was done under the supervision and with the
participation of management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO).
Attached as exhibits to this Annual Report are certifications of the CEO and the CFO, which are required in accordance with Rule 13a-
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of the Exchange Act. This “Controls and Procedures” section includes the information concerning the controls evaluation referred to in the
certifications, and it should be read in conjunction with the certifications for a more complete understanding of the topics presented.
Definition of Disclosure Controls
Disclosure Controls are controls and procedures designed to reasonably assure that information required to be disclosed in our reports
filed under the Exchange Act, such as this Annual Report, is recorded, processed, summarized and reported within the time periods specified in
the Securities and Exchange Commission’
s rules and forms. Disclosure Controls are also designed to reasonably assure that such information is
accumulated and communicated to our management, including the CEO and CFO, as appropriate to allow timely decisions regarding required
disclosure. Our Disclosure Controls include components of our internal control over financial reporting, which consists of control processes
designed to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements in
accordance with generally accepted accounting principles in the U.S. To the extent that components of our internal control over financial
reporting are included within our Disclosure Controls, they are included in the scope of our quarterly controls evaluation.
Limitations on the Effectiveness of Controls
The company’s management, including the CEO and CFO, does not expect that our Disclosure Controls or our internal control over
financial reporting will prevent all error 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. Further, 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. Because of the inherent limitations in
all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the
company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that
breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by
collusion of two or more people, or by management override of the controls. 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. Because of the inherent limitations in a cost-effective control system, misstatements due to error or
fraud may occur and not be detected.
Scope of the Controls Evaluation
The evaluation of our Disclosure Controls included a review of the controls’ objectives and design, the company’s implementation of the
controls and the effect of the controls on the information generated for use in this Annual Report. In the course of the controls evaluation, we
sought to identify data errors, control problems or acts of fraud and confirm that appropriate corrective action, including process improvements,
were being undertaken. This type of evaluation is performed on a quarterly basis so that the conclusions of management, including the CEO
and CFO, concerning the effectiveness of the controls can be reported in our Quarterly Reports on Form 10-Q and to supplement our
disclosures made in our Annual Report on Form 10-K. Many of the components of our Disclosure Controls are also evaluated on an ongoing
basis by our Internal Audit Department and by other personnel in our Finance organization, as well as our independent auditors who evaluate
them in connection with determining their auditing procedures related
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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
ITEM 9A. CONTROLS AND PROCEDURES