GE has adopted robust accounting policies, and devotes significant resources to ensuring that those policies are applied properly and consistently throughout its global operations. We maintain a dynamic system of internal controls and procedures designed to ensure reliable book- and record-keeping, transparent reporting, and the protection of physical and intellectual property. Controllers at GE headquarters and in each GE business conduct regular financial statement reviews and account reconciliations; they also discuss issues and best practices at regular meetings of the GE Controllership Council.
The senior finance leadership team oversees the application of accounting policies and internal controls, and is regularly apprised of current controllership metrics and new or revised accounting policies during its Finance Council meetings.
The GE internal audit function includes more than 470 auditors including members of the Corporate Audit Staff, and conducts various audits each year—in every GE geographic area and at every GE business. The Audit Committee oversees the scope and evaluates the overall results of these audits, and members of the committee meet jointly with GE Capital’s Board of Directors and regularly attend internal audit and Controllership Council meetings. GE’s internal audit function reports directly to the Audit Committee of the Board. In addition, partners from KPMG LLP, GE’s independent auditor, work with their colleagues and GE’s internal auditors to conduct the necessary statutory and auditing reviews.
GE finance leaders, including the Chief Financial Officer (CFO), the Controller, and the Vice President, Corporate Audit Staff regularly review the status of controllership metrics (including account reconciliations, the outcomes of internal audit reviews, and Sarbanes-Oxley 404 certification) with the Audit Committee.
Senior management of the Company and of each of the businesses conduct regular reviews of the financial operations at each business. The CEOs and CFOs of GE businesses have been required to sign representation letters attesting to financial results. Executives with detailed knowledge of GE businesses—and the related needs of investors—serve on disclosure committees at both the corporate and the business level. These disclosure committees discuss the completeness of financial and nonfinancial disclosures and report their findings to the CEO, the CFO and the Audit Committee.