Alcoa 2009 Annual Report Download - page 80

Management also recognizes its responsibility for conducting the Company’s affairs according to the highest standards
of personal and corporate conduct. 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.
Management’s Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting for the
Company. In order to evaluate the effectiveness of internal control over financial reporting, as required by Section 404
of the Sarbanes-Oxley Act, management has conducted an assessment, including testing, using the criteria in Internal
Control – Integrated Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO). The Company’s system of internal control over financial reporting is designed to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles. The 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.
Based on the assessment, management has concluded that the Company maintained effective internal control over
financial reporting as of December 31, 2009, based on criteria in Internal Control – Integrated Framework issued by
the COSO.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2009 has been audited
by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report, which is
included herein.
Klaus Kleinfeld
President and Chief Executive Officer
Charles D. McLane, Jr.
Executive Vice President and
Chief Financial Officer
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