Alcoa 2003 Annual Report Download - page 43

41
Management’s Report to
Alcoa Shareholders
The accompanying financial statements of Alcoa and consolidated
subsidiaries were prepared by management, which is responsible
fortheir integrity and objectivity. The statements were prepared
in accordance with generally accepted accounting principles and
include amounts that are based onmanagement’s best judgments
andestimates.The other financial information included in this
annual report is consistent with that in the financial statements.
The company maintains a system ofinternal controls, including
accounting controls, and a strong program of internal auditing.
The system of controls provides for appropriate procedures that are
consistent with high standards of accounting and administration.
The company believes that its system of internal controls provides
reasonable assurance that assets are safeguarded against losses
from unauthorized use or disposition and thatfinancial records
are reliable for use in preparing financial statements.
Management also recognizes its responsibility for conducting
the company’s affairs according to the highest standards of personal
andcorporateconduct. This responsibility is characterized and
reflected in key policy statements issued from time to time regarding,
among other things, conduct of its business activities within the
laws of the host countries in which the company operates and
potentially conflicting outside business interests of its employees.
The company maintains a systematic program to assess compliance
with these policies.
Alain J.P. Belda
Chairman and
Chief Executive Officer
Richard B.Kelson
Executive VicePresident
and Chief Financial Officer
Report of Independent Auditors
To theShareholders and Board of Directors of Alcoa Inc.:
In our opinion, the accompanying consolidated balance sheet and
therelatedconsolidatedstatements of income,shareholders’ equity
and cash flows present fairly, in all material respects, the financial
position of Alcoa Inc. and its subsidiaries (Alcoa) 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
theresponsibility of Alcoa’s management; 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 perform 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 management, and evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
As discussed in Note C to the consolidated financial statements,
Alcoa changed its method of accounting for asset retirement
obligations in 2003. As discussed in Notes A and E to the consoli-
dated financial statements, Alcoa changed its method of accounting
for long-lived asset impairments and goodwill and other intangibles
in 2002.
Pittsburgh, Pennsylvania
January 8, 2004
CertificationsPursuant
to Section 302 of the
Sarbanes-Oxley Act of 2002
The Section 302 certifications of theChiefExecutive Officer and
the Chief Financial Officer of Alcoa have been filed as Exhibits 31
and 32, respectively, in Alcoa’s Form 10-K for the fiscal year ended
December 31, 2003.