Bank of America 2002 Annual Report Download - page 72

Report of Management
Bank of America Corporation and Subsidiaries
70 BANK OF AMERICA 200270 BANK OF AMERICA 200270 BANK OF AMERICA 2002
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 con-
trols 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 con-
solidated financial statements in accordance with accounting princi-
ples 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 cir-
cumvention 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 rea-
sonable 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, 2002, management believes that the
internal controls are in place and operating effectively.
The Corporate Audit Division 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 deter-
mining 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 independ-
ent audit provides an objective review of management’s responsibility
to report operating results and financial condition. Their report
appears on page 71.
The Board of Directors discharges its responsibility for the
Corporation’s consolidated financial statements through its Audit
Committee. The Audit Committee has direct oversight responsibility
for corporate audit and the independent accountants and meets
periodically with these groups and management to discuss the scope
and results of their work, the adequacy of internal accounting controls
and the quality of financial reporting.
Kenneth D. Lewis
Chairman, President and Chief Executive Officer
James H. Hance, Jr.
Vice Chairman and Chief Financial Officer