Bank of America 2004 Annual Report Download - page 96

BANK OF AMERICA 2004 95
To the Board of Directors and
Shareholders of Bank of America Corporation:
We have completed an integrated audit of Bank of America
Corporation’s 2004 Consolidated Financial Statements and of its
internal control over financial reporting as of December 31, 2004 and
audits of its 2003 and 2002 Consolidated Financial Statements in
accordance with the standards of the Public Company Accounting
Oversight Board (United States). Our opinions, based on our audits,
are presented below.
Consolidated Financial Statements
In our opinion, the accompanying Consolidated Balance Sheets and the
related Consolidated Statements of Income, Consolidated Statements
of Changes in Shareholders’ Equity and Consolidated Statements of
Cash Flows present fairly, in all material respects, the financial position
of Bank of America Corporation and its subsidiaries at December 31,
2004 and 2003, and the results of their operations and their cash
flows for each of the three years in the period ended December 31,
2004 in conformity with accounting principles generally accepted in
the United States of America. These Consolidated Financial Statements
are the responsibility of the Corporation’s management. Our respon-
sibility is to express an opinion on these Consolidated Financial
Statements based on our audits. We conducted our audits of these
Consolidated Financial Statements in accordance with the standards
of the Public Company Accounting Oversight Board (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 of financial statements
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 management, and
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
Internal Control Over Financial Reporting
Also, in our opinion, management’s assessment, included in the
Report of Management on Internal Control Over Financial Reporting
appearing on page 94 of the Annual Report, that the Corporation
maintained effective internal control over financial reporting as of
December 31, 2004 based on criteria established in Internal Control –
Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO), is fairly stated,
in all material respects, based on those criteria. Furthermore, in our
opinion, the Corporation maintained, in all material respects, effec-
tive internal control over financial reporting as of December 31,
2004, based on criteria established in Internal Control – Integrated
Framework issued by the COSO. The Corporation’s management is
responsible for maintaining effective internal control over financial
reporting and for its assessment of the effectiveness of internal
control over financial reporting. Our responsibility is to express
opinions on management’s assessment and on the effectiveness of
the Corporation’s internal control over financial reporting based on
our audit. We conducted our audit of internal control over financial
reporting in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether effective internal control over financial reporting
was maintained in all material respects. An audit of internal control
over financial reporting includes obtaining an understanding of internal
control over financial reporting, evaluating management’s assessment,
testing and evaluating the design and operating effectiveness of
internal control, and performing such other procedures as we
consider necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinions.
A company’s internal control over financial reporting is a process
designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for exter-
nal purposes in accordance with generally accepted accounting princi-
ples. A company’s internal control over financial reporting includes
those policies and procedures that (i) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (ii) provide
reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of
the company are being made only in accordance with authorizations of
management and directors of the company; and (iii) provide reasonable
assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of the company’s assets that could have
a material effect on the financial statements.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to
the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
Charlotte, North Carolina
February 25, 2005
Report of Independent Registered Public Accounting Firm
Bank of America Corporation and Subsidiaries