US Airways 2005 Annual Report Download - page 100

Table of Contents
Item 8A. Consolidated Financial Statements and Supplementary Data of US Airways Group, Inc.
On September 27, 2005, US Airways Group consummated the transactions contemplated by its plan of reorganization, including the merger transaction
with America West Holdings. As a result of the merger, America West Holdings became a wholly owned subsidiary of US Airways Group. As described in
greater detail in Notes 1 and 2, while the merger was structured such that US Airways Group was the legal acquirer, the merger has been accounted for as a
reverse acquisition such that America West Holdings has been treated as the accounting acquirer. Financial information for periods prior to the merger include
the accounts and activities of America West Holdings. America West Holdings is the holding company that owns all of the stock of AWA.
Management's Annual Report on Internal Control over Financial Reporting
Management of US Airways Group, Inc. is responsible for establishing and maintaining adequate internal control over financial reporting as defined in
Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934, as amended. US Airways Group's 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. US Airways Group's internal control over financial reporting includes those policies and
procedures that:
• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of
US Airways Group;
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of US Airways Group are being made only in accordance with authorizations of
management and directors of US Airways Group; and
• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of US Airways Group's assets that
could have a material effect on the financial statements.
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.
Management assessed the effectiveness of US Airways Group's internal control over financial reporting as of December 31, 2005. In making this
assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-
Integrated Framework.
Based on our assessment and those criteria, management concludes that US Airways Group maintained effective internal control over financial reporting
as of December 31, 2005.
US Airways Group's independent registered public accounting firm has issued an audit report on management's assessment of the Company's internal
control over financial reporting. That report has been included herein. 94