American Airlines 1999 Annual Report Download - page 60

REPORT OF INDEPENDENT AUDITORS
59
The Board of Directors and Stockholders
AMR Corporation
We have audited the accompanying consolidated statements
of balance sheets of AMR Corporation as of December 31, 1999
and 1998, and the related consolidated statements of operations,
stockholders’ equity, and cash flows for each of the three years
in the period ended December 31, 1999. These financial statements
are the responsibility of the Company’s management. Our respon-
sibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with auditing stan-
dards generally accepted in the United States. Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures 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 consolidated financial
position of AMR Corporation at December 31, 1999 and 1998,
and the consolidated results of its operations and its cash flows
for each of the three years in the period ended December 31,
1999, in conformity with accounting principles generally accepted
in the United States.
2121 San Jacinto
Dallas, Texas 75201
January 17, 2000, except for the
second paragraph of Note 12,
for which the date is
March 15, 2000.
The management of AM R Corporation is responsible for the
integrity and objectivity of the Company’s financial statements
and related information. The financial statements have been
prepared in conformity with accounting principles generally
accepted in the United States and reflect certain estimates and
judgments 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 through-
out the organization. M anagement’s commitment to the program
is evidenced by organizational arrangements that provide for
divisions of responsibility, effective communication of policies and
procedures, selection of competent financial managers and
development and maintenance of financial planning and report-
ing systems.
Management continually monitors the system for compliance.
AMR maintains a strong internal auditing program that inde-
pendently assesses the effectiveness of the internal controls and
recommends possible improvements. Ernst & Young, independent
auditors, is engaged to audit the Company’s financial statements.
Ernst & Young obtains and maintains an understanding of the
internal control structure and conducts such tests and other
auditing procedures considered necessary in the circumstances
to render the opinion on the financial statements contained
in their report.
The Audit Committee of the Board of Directors, composed
entirely of independent directors, meets regularly with the inde-
pendent auditors, management and internal auditors to review
their work and confirm that they are properly discharging their
responsibilities. 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.
Donald J. Carty Thomas W. Horton
Chairman, President and Senior Vice President and
Chief Executive Officer Chief Financial Officer
REPORT OF MANAGEMENT