US Airways 2007 Annual Report Download - page 69

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 Note 1(b), while the merger was structured such that US Airways Group was the
legal acquirer, the merger was accounted for as a reverse acquisition such that America West Holdings was treated as the accounting
acquirer. Financial information for periods prior to the merger include the accounts and activities of America West Holdings, which
owned 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, 2007.
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, 2007.
US Airways Group's independent registered public accounting firm has issued an audit report on the effectiveness of the Company's
internal control over financial reporting. That report has been included herein.
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