Bank of America 2003 Annual Report Download - page 38

72 BANK OF AMERICA 2003 BANK OF AMERICA 2003 73
To the Board of Directors and Shareholders of
Bank of America Corporation:
In our opinion, the accompanying consolidated balance sheets and
the related consolidated statements of income, of changes in share-
holders’ equity and of cash flows present fairly, in all material
respects, the financial position of Bank of America Corporation and
its subsidiaries at December 31, 2003 and 2002, and the results of
their operations and their cash flows for each of the three years in
the period ended December 31, 2003, in conformity with accounting
principles generally accepted in the United States of America. These
financial statements are the responsibility of the Corporation’s man-
agement; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these
statements in accordance with auditing standards generally accepted
in the United States of America, which require that we plan and per-
form 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, assessing the
accounting principles used and significant estimates made by man-
agement, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
Report of Independent Auditors
Bank of America Corporation and Subsidiaries
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 the accompanying 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 controls over
financial reporting 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 circum-
stances. 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, 2003,
management believes that the internal controls over financial report-
ing 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 auditors 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
Charlotte, North Carolina
January 15, 2004
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 73.
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 auditors and meets peri-
odically 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
Report of Management
Bank of America Corporation and Subsidiaries