LabCorp 2008 Annual Report Download - page 32

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Laboratory Corporation of America
30 Laboratory Corporation of America® Holdings 2008
Report of Management on Internal Control
Over Financial Reporting
The Company’s management is responsible for establishing and maintaining adequate
internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f)
under the Securities Exchange Act of 1934).
The internal control over financial reporting at the Company was 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 of America. Internal control over financial reporting 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 accounting principles
generally accepted in the United States of America;
• provide reasonable assurance that receipts and expenditures of the Company are
being made only in accordance with authorization of management and directors
of the Company; and
• provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of assets that could have a material effect on the
consolidated financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent
or detect misstatements.
The Company’s management assessed the effectiveness of the Company’s internal control
over financial reporting as of December 31, 2008. Management based this assessment on
criteria for effective internal control over financial reporting described in “Internal Control –
Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway
Commission (“COSO”). Based on this assessment, the Company’s management determined
that, as of December 31, 2008, the Company maintained effective internal control over financial
reporting. Management reviewed the results of its assessment with the Audit Committee of the
Company’s Board of Directors.
The Company excluded its Ontario, Canada operations from its assessment of internal
control over financial reporting as of December 31, 2008 because our control over this operation
was acquired by the Company in a purchase business combination during 2008. The total assets
and total revenues of the Ontario operations represent 3.4% and 5.5%, respectively, of the related
consolidated financial statement amounts as of and for the year ended December 31, 2008.
PricewaterhouseCoopers LLP, an independent registered public accounting firm, who
audited and reported on the consolidated financial statements of the Company included in this
annual report, has also audited the effectiveness of the Company’s internal control over financial
reporting as of December 31, 2008 as stated in its report, which is included herein immediately
preceding the Company’s audited financial statements.