Management Offers Zero (Credibility)
Saturday, August 5, 2006
From the Annual Report
General Motors' management is responsible for establishing and maintaining internal controls over financial reporting and disclosure controls. Internal controls over financial reporting are designed to provide reasonable assurance that the books and records reflect the transactions of General Motors Corporation and subsidiaries and that established policies and procedures are carefully followed.
During 2005 GM identified three material weaknesses in internal controls, relating to statements of cash flows, accounting for vehicles on operating lease with daily rental car entities, and impairment of foreign investments accounted for under the equity method. For further discussion, see Item 9A, Controls and Procedures, in GM's Annual Report on Form 10-K for the year ended December 31, 2005.
Based on our assessment, management has concluded that our internal control over financial reporting was not effective as of the end of the fiscal year to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles.
G. Richard Wagoner