Bank of America 2001 Annual Report Download - page 78

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BANK OF AMERICA 2001 ANNUAL REPORT
76
The management of Bank of America Corporation is responsible for the preparation, integrity and objectivity of the consolidated financial statements
of the Corporation. The consolidated financial statements and notes have been prepared by the Corporation in accordance with accounting principles
generally accepted in the United States of America and, in the judgment of management, present fairly the Corporation’s financial position and results
of operations. The financial information contained elsewhere in this report is consistent with that in the consolidated financial statements. The financial
statements and other financial information in this report include amounts that are based on management’s best estimates and judgments giving due
consideration to materiality.
The Corporation maintains a system of internal accounting controls to provide reasonable assurance that assets are safeguarded and that
transactions are executed in accordance with management’s authorization and recorded properly to permit the preparation of consolidated financial
statements in accordance with accounting principles generally accepted in the United States of America. Management recognizes that even a highly
effective internal control system has inherent risks, including the possibility of human error and the circumvention or overriding of controls, and that
the effectiveness of an internal control system can change with circumstances. However, management believes that the internal control system provides
reasonable assurance that errors or irregularities that could be material to the consolidated financial statements are prevented or would be detected
on a timely basis and corrected through the normal course of business. As of December 31, 2001, management believes that the internal controls are
in place and operating effectively.
The Internal Audit Division of the Corporation reviews, evaluates, monitors and makes recommendations on both administrative and accounting
control and acts as an integral, but independent, part of the system of internal controls.
The independent accountants were engaged to perform an independent audit of the consolidated financial statements. In determining the nature
and extent of their auditing procedures, they have evaluated the Corporation’s accounting policies and procedures and the effectiveness of the related
internal control system. An independent audit provides an objective review of management’s responsibility to report operating results and financial
condition. Their report appears on page 77.
The Board of Directors discharges its responsibility for the Corporation’s consolidated financial statements through its Audit Committee. The Audit
Committee meets periodically with the independent accountants, internal auditors and management. Both the independent accountants and internal
auditors have direct access to the Audit Committee to discuss the scope and results of their work, the adequacy of internal accounting controls and the
quality of financial reporting.
Kenneth D. Lewis James H. Hance, Jr.
Chairman of the Board and Chief Executive Officer Vice Chairman and Chief Financial Officer
Report of Management