Cemex 1999 Annual Report Download - page 41

39
MANAGEMENT’S RESPONSIBILITY FOR INTERNAL CONTROL
The Board of Directors and Stockholders
Cemex, S.A. de C.V.:
We have performed a study and evaluation of the system of internal
accounting control of Cemex, S.A. de C.V. and Subsidiaries for the year
ended December 31, 1999. The management of Cemex, S.A. de C.V. is
responsible for establishing and maintaining a system of internal
accounting control. Our responsibility is to express an opinion on this
system of internal control based on our review. We conducted our
study and evaluation in accordance with generally accepted auditing
standards.
Because of inherent limitations in any system of internal accounting
control, errors and irregularities may nevertheless occur and not be
detected. Also, projection of any evaluation of the system to future
periods is subject to the risk that procedures may become inadequate
because of changes in conditions or that the degree of compliance with
the procedures may deteriorate.
In our opinion, the system of internal accounting control of Cemex,
S.A. de C.V. and Subsidiaries for the year ended December 31, 1999,
taken as a whole, was sufficient to meet management’s objectives and
to provide reasonable assurance that material errors or irregularities will
be prevented or detected in the normal course of business.
KPMG Cárdenas Dosal, S.C.
Rafael Gómez Eng
Monterrey, N.L. Mexico
January 17, 2000.
The management of Cemex, S.A. de C.V. is responsible for the
preparation and integrity of the accompanying consolidated financial
statements and for maintaining a system of internal control to provide
reasonable assurance to shareholders, to the financial community and
other interested parties, that transactions are executed in accordance
with management authorization, accounting records are reliable as a
basis for the preparation of the consolidated financial statements and
to provide reasonable assurance that assets are safeguarded against loss
from unauthorized use or disposition.
In fulfilling its responsibilities for the integrity of financial information,
management maintains and relies on the Company’s system of internal
control. This system is based on an organizational structure providing
division of responsibilities and the selection and training of qualified
personnel. Also, it includes policies, which are communicated to all
personnel through appropriate communication channels. The system
of internal control is supported by an internal audit function that
operates at international level and reports its findings to management
throughout the year. Management believes that, for the year ended
December 31, 1999, the internal control system of the Company provides
reasonable assurance that material errors or irregularities will be prevented
or detected within a timely period and is cost effective.
Cemex, S.A. de C.V. engaged KPMG Cárdenas Dosal, S.C., the Company’s
principal independent auditors, to perform an audit of system internal
control and express their opinion thereon for the year ended December 31,
1999. Their audit applied generally accepted auditing standards, which
include a review and evaluation of control systems and performance of
such test of accounting information records as they considered necessary
in order to reach their opinion. Their report is presented separately.
Lorenzo H. Zambrano
Chairman of the Board
and Chief Executive Officer