PNC Bank 2002 Annual Report Download - page 69

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REPORTS ON CONSOLIDATED FINANCIAL STATEMENTS
THE PNC FINANCIAL SERVICES GROUP, INC.
67
MANAGEMENT’S RESPONSIBILITY FOR
FINANCIAL REPORTING
The management of The PNC Financial Services Group, Inc.
is responsible for the preparation, integrity and fair
presentation of its published consolidated financial
statements. The accompanying consolidated financial
statements have been prepared in accordance with accounting
principles generally accepted in the United States of America
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 controls over financial reporting
and disclosure controls and procedures. 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. Internal
auditors test the operation of the internal control system and
report findings to management and the Audit Committee, and
corrective actions are taken to address identified control
deficiencies and other opportunities for improving the system.
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 controls over financial reporting and disclosure
controls and procedures as of December 31, 2002. This
assessment was based on criteria for effective internal controls
over financial reporting described in “Internal Control-
Integrated Framework” issued by the Committee of
Sponsoring Organizations of the Treadway Commission and
on requirements for disclosure controls and procedures
arising from the Sarbanes-Oxley Act of 2002. Based on this
assessment, management believes that The PNC Financial
Services Group, Inc. maintained effective internal controls
over financial reporting and disclosure controls and
procedures as of December 31, 2002.
James E. Rohr William S. Demchak
REPORT OF DELOITTE & TOUCHE LLP,
INDEPENDENT AUDITORS
To the Board of Directors and Shareholders of
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, 2002, and the related consolidated statements
of income, shareholders’ equity, and cash flows for the year
then ended. 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 audit. The financial statements of The
PNC Financial Services Group, Inc. for the years ended
December 31, 2001 and 2000 were audited by other auditors
whose report, dated March 1, 2002, expressed an unqualified
opinion on those statements.
We conducted our audit in accordance with auditing
standards generally accepted in the United States of America.
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 audit provides a reasonable basis for our
opinion.
In our opinion, such consolidated financial statements
present fairly, in all material respects, the financial position of
The PNC Financial Services Group, Inc. and subsidiaries as of
December 31, 2002, and the consolidated results of their
operations and their cash flows for the year then ended in
conformity with accounting principles generally accepted in the
United States of America.
As discussed in Note 14 to the consolidated financial
statements, in 2002 The PNC Financial Services Group, Inc.
changed its method of accounting for goodwill and other
intangible assets to conform with Statement of Financial
Accounting Standards No. 142.
Pittsburgh, Pennsylvania
February 17, 2003
Chairman and Vice Chairman and
Chief Executive Officer Chief Financial Officer