Raytheon 2004 Annual Report Download - page 70

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52
Item 8. Financial Statements and
Supplementary Data
COMPANY RESPONSIBILITY FOR FINANCIAL STATEMENTS
The financial statements and related information contained in this Annual Report have been prepared by and are
the responsibility of the Company’s management. The Company’s financial statements have been prepared in
conformity with accounting principles generally accepted in the United States of America and reflect judgments
and estimates as to the expected effects of transactions and events currently being reported. The Company’s
management is responsible for the integrity and objectivity of the financial statements and other financial
information included in this Annual Report. To meet this responsibility, the Company maintains a system of
internal control over financial reporting to provide reasonable assurance that assets are safeguarded and that
transactions are properly executed and recorded. The system includes policies and procedures, internal audits, and
Company officers’ reviews.
The Audit Committee of the Board of Directors is composed solely of outside directors. The Audit Committee
meets periodically and, when appropriate, separately with representatives of the independent registered public
accounting firm, Company officers, and the internal auditors to monitor the activities of each.
Upon recommendation of the Audit Committee, PricewaterhouseCoopers LLP, an independent registered
public accounting firm, was selected by the Board of Directors to audit the Company’s financial statements and
management’s assessment of the Company’s internal control over financial reporting and their report is below.
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. 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 its assessment, management has concluded that the Company maintained effective internal control
over financial reporting as of December 31, 2004, based on criteria in Internal Control – Integrated Framework,
issued by the COSO. Management’s assessment of the effectiveness of the Company’s internal control over financial
reporting as of December 31, 2004, has been audited by PricewaterhouseCoopers LLP, an independent registered
public accounting firm, as stated in their report which follows.
/s/ Edward S. Pliner /s/ William H. Swanson
Edward S. Pliner William H. Swanson
Senior Vice President and Chief Financial Officer Chairman and Chief Executive Officer