PNC Bank 2001 Annual Report Download - page 63

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REPORTS ON CONSOLIDATED FINANCIAL STATEMENTS
THE PNC FINANCIAL SERVICES GROUP, INC.
61
MANAGEMENT’S RESPONSIBILITY FOR
FINANCIAL REPORTING
The PNC Financial Services Group, Inc. is responsible for
the preparation, integrity and fair presentation of its
published financial statements. The accompanying
consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in
the United States and, as such, include judgments and
estimates of management. The PNC Financial Services
Group, Inc. also prepared the other information included in
the Annual Report and is responsible for its accuracy and
consistency with the consolidated financial statements.
Management is responsible for establishing and
maintaining effective internal control over financial
reporting. The internal control system is augmented by
written policies and procedures and by audits performed by
an internal audit staff, which reports to the Audit Committee
of the Board of Directors. The Audit Committee, composed
solely of independent directors, provides oversight to
management’s conduct of the financial reporting process.
There are inherent limitations in the effectiveness of any
system of internal control, including the possibility of human
error and circumvention or overriding of controls.
Accordingly, even effective internal control can provide only
reasonable assurance with respect to financial statement
preparation. Further, because of changes in conditions, the
effectiveness of internal control may vary over time.
Management assessed The PNC Financial Services
Group, Inc.’s internal control over financial reporting as of
December 31, 2001. This assessment was based on criteria
for effective internal control over financial reporting
described in “Internal Control-Integrated Framework” issued
by the Committee of Sponsoring Organizations of the
Treadway Commission and considered the matters that gave
rise to the restatements announced in early 2002. Based on
this assessment, management believes that The PNC
Financial Services Group, Inc. maintained an effective
internal control system over financial reporting as of
December 31, 2001.
James E. Rohr Robert L. Haunschild
Chairman, President Chief Financial Officer
and Chief Executive Officer
REPORT OF ERNST & YOUNG LLP,
INDEPENDENT AUDITORS
Shareholders and Board of Directors
The PNC Financial Services Group, Inc.
We have audited the accompanying consolidated balance
sheet of The PNC Financial Services Group, Inc. and
subsidiaries as of December 31, 2001 and 2000, and the
related consolidated statements of income, shareholders’
equity, and cash flows for each of the three years in the
period ended December 31, 2001. These financial statements
are the responsibility of The PNC Financial Services Group,
Inc.’s management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing
standards generally accepted in the United States. Those
standards 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. An audit
also includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the consolidated
financial position of The PNC Financial Services Group, Inc.
and subsidiaries at December 31, 2001 and 2000, and the
consolidated results of their operations and their cash flows
for each of the three years in the period ended December 31,
2001, in conformity with accounting principles generally
accepted in the United States.
Pittsburgh, Pennsylvania
March 1, 2002