Bank of America 2005 Annual Report Download - page 123

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
See “Market Risk Management” in the MD&A beginning on page 65 which is incorporated herein by reference.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Report of Management on Internal Control Over Financial Reporting
The management of Bank of America Corporation is responsible for establishing and maintaining adequate internal
control over financial reporting.
The Corporation’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 external purposes in
accordance with accounting principles generally accepted in the United States of America. The Corporation’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 accounting principles generally accepted in the United States of America, 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.
Management assessed the effectiveness of the Corporation’s internal control over financial reporting as of
December 31, 2005, based on the framework set forth by the Committee of Sponsoring Organizations of the Treadway
Commission in Internal Control—Integrated Framework. Based on that assessment, management concluded that, as of
December 31, 2005, the Corporation’s internal control over financial reporting is effective based on the criteria
established in Internal Control—Integrated Framework.
Management’s assessment of the effectiveness of the Corporation’s internal control over financial reporting as of
December 31, 2005, has been audited by PricewaterhouseCoopers, LLP, an independent registered public accounting
firm, as stated in their report appearing on page 88.
Kenneth D. Lewis
Chairman, President and Chief Executive Officer
Alvaro G. de Molina
Chief Financial Officer
87