American Airlines 1997 Annual Report Download - page 69

67
The Board of Directors and Stockholders
AMR Corporation
We have audited the accompanying consolidated balance
sheets of AMR Corporation as of December 31, 1997 and
1996, and the related consolidated statements of opera-
tions, stockholders’ equity, and cash flows for each of the
three years in the period ended December 31, 1997. These
financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable assur-
ance about whether the financial statements are free of
material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclo-
sures in the financial statements. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to
above present fairly, in all material respects, the consolidat-
ed financial position of AMR Corporation at December 31,
1997 and 1996, and the consolidated results of its opera-
tions and its cash flows for each of the three years in the
period ended December 31, 1997, in conformity with gen-
erally accepted accounting principles.
2121 San Jacinto
Dallas, Texas 75201
January 19, 1998
The management of AMR Corporation is responsible for
the integrity and objectivity of the Company’s financial state-
ments and related information. The financial statements
have been prepared in conformity with generally accepted
accounting principles and reflect certain estimates and judg-
ments of management as to matters set forth therein.
AMR maintains a system of internal controls designed
to provide reasonable assurance, at reasonable cost, that its
financial records can be relied upon in the preparation of
financial statements and that its assets are safeguarded
against loss or unauthorized use. An important element of
the Company’s control systems is the ongoing program to
promote control consciousness throughout the organiza-
tion. Management’s commitment to the program is evi-
denced by organizational arrangements that provide for
divisions of responsibility, effective communication of poli-
cies and procedures, selection of competent financial man-
agers and development and maintenance of financial plan-
ning and reporting systems.
Management continually monitors the system for com-
pliance. AMR maintains a strong internal auditing program
that independently assesses the effectiveness of the internal
controls and recommends possible improvements. Ernst &
Young, independent auditors, is engaged to audit the Com-
pany’s financial statements. Ernst & Young obtains and
maintains an understanding of the internal control structure
and conducts such tests and other auditing procedures con-
sidered necessary in the circumstances to render the opin-
ion on the financial statements contained in their report.
The Audit Committee of the Board of Directors, com-
posed entirely of directors who are not employees of AMR,
meets regularly with the independent auditors, manage-
ment and internal auditors to review their work and con-
firm that they are properly discharging their responsibili-
ties. In addition, the independent auditors and the internal
auditors meet periodically with the Audit Committee,
without the presence of management, to discuss the results
of their work and other relevant matters.
Robert L. Crandall
Chairman, President and
Chief Executive Officer
Gerard J. Arpey
Senior Vice President and
Chief Financial Officer
REPORT OF I NDEPENDENT AUDITORS REPORT OF M ANAGEM ENT