LabCorp 2009 Annual Report Download - page 36

34 LABORATORY CORPORATION OF AMERICA
The Company’s management is responsible for establishing and
maintaining adequate internal control over financial reporting
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 account-
ing 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 expendi-
tures 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, 2009. 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, 2009, 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 Monogram operations from its
assessment of internal control over financial reporting as of
December 31, 2009 because its control over this operation
was acquired by the Company in a purchase business combi-
nation during 2009. The total assets and total revenues of the
Monogram operations represented 3.9% and 0.4%, respec-
tively, of the related consolidated financial statement amounts
as of and for the year ended December 31, 2009.
PricewaterhouseCoopers LLP, an independent registered
public accounting firm, who audited and reported on the con-
solidated financial statements of the Company included in this
annual report, also audited the effectiveness of the Company’s
internal control over financial reporting as of December 31, 2009
as stated in its report, which is included herein immediately
preceding the Company’s audited financial statements.
LABORATORY CORPORATION OF AMERICA
Report of Management on Internal Control
Over Financial Reporting