Common use of Internal Controls Over Financial Reporting Clause in Contracts

Internal Controls Over Financial Reporting. The Company maintains internal controls over financial reporting that are sufficient to provide reasonable assurance regarding (a) the reliability of the Company’s financial reporting and the preparation of financial statements in accordance with GAAP, including policies and procedures that pertain to maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the Newhall Companies and their Subsidiaries, (b) that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that receipts and expenditures of the Newhall Companies and their Subsidiaries are being made only in accordance with authorizations of their management and directors, and (c) prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Newhall Companies and their Subsidiaries that could have a material effect on their financial statements.