American Airlines 2001 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 of the 2001 American Airlines annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 48

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48

40
REPORT OF MANAGEMENT
The management of AMR Corporation is responsible for the integrity and objectivity of the Company’s financial
statements and related information. The financial statements have been prepared in conformity with accounting principles
generally accepted in the United States and reflect certain estimates and judgments of management as to matters set forth therein.
AMR maintains a system of internal controls designed to provide reasonable assurance, at reasonable cost, that its financial
records can be relied upon in the preparation of financial statements and that its assets are safeguarded against loss or unauthorized
use. An important element of the Company’s control systems is the ongoing program to promote control consciousness
throughout the organization. Management’s commitment to the program is evidenced by organizational arrangements that
provide for divisions of responsibility, effective communication of policies and procedures, selection of competent financial
managers and development and maintenance of financial planning and reporting systems.
Management continually monitors the system for compliance. AMR maintains a strong internal auditing program
that independently assesses the effectiveness of the internal controls and recommends possible improvements. Ernst & Young,
independent auditors, is engaged to audit the Company’s financial statements. Ernst & Young obtains and maintains an under-
standing of the internal control structure and conducts such tests and other auditing procedures considered necessary in the
circumstances to render the opinion on the financial statements contained in their report.
The Audit Committee of the Board of Directors, composed entirely of independent directors, meets regularly with the
independent auditors, management and internal auditors to review their work and confirm that they are properly discharging
their responsibilities. In addition, the independent auditors and the internal auditors meet periodically with the Audit Committee,
without the presence of management, to discuss the results of their work and other relevant matters.
Donald J. Carty
Chairman, President and Chief Executive Officer
Thomas W. Horton
Senior Vice President and Chief Financial Officer