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UTC's internal audit teams conduct risk-based audits and recommend strategic solutions to the UTC business units. These controls are designed to provide reasonable assurance that the Corporation’s assets are safeguarded, that transactions are executed in accordance with management’s authorizations and that the financial records are reliable for the purpose of preparing financial statements. In making its assessment, management has utilized the criteria set forth by the Committee of Sponsoring Organizations (COSO) of the Tread way Commission in Internal Control — Integrated Framework. Management concluded that based on its assessment, UTC’s internal control over financial reporting was effective as of December 31, 2006...
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