Alcoa 2001 Annual Report Download - page 46

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44
Management’s Report to
Alcoa Shareholders
The accompanying financial statements of Alcoa and consolidated
subsidiaries were prepared by management, which is responsible
for their integrity and objectivity. The statements were prepared
in accordance with generally accepted accounting principles and
include amounts that are based on management’s best judgments and
estimates. The other financial information included in this annual
report is consistent with that in the financial statements.
The company maintains a system of internal controls, including
accounting controls, and a strong program of internal auditing.
The system of controls provides for appropriate procedures that are
consistent with high standards of accounting and administration.
The company believes that its system of internal controls provides
reasonable assurance that assets are safeguarded against losses
from unauthorized use or disposition and that financial records are
reliable for use in preparing financial statements.
Management also recognizes its responsibility for conducting
the company’s affairs according to the highest standards of personal
and corporate conduct. This responsibility is characterized and
reflected in key policy statements issued from time to time regarding,
among other things, conduct of its business activities within the
laws of the host countries in which the company operates and
potentially conflicting outside business interests of its employees.
The company maintains a systematic program to assess compliance
with these policies.
Alain J.P. Belda
Chairman and
Chief Executive Officer
Richard B. Kelson
Executive Vice President and
Chief Financial Officer/
Chief Compliance Officer
Report of Independent Accountants
To the Shareholders and Board of Directors
Alcoa Inc. (Alcoa)
In our opinion, the accompanying consolidated balance sheet and
the related consolidated statements of income and shareholders’
equity and of cash flows present fairly, in all material respects, the
financial position of Alcoa at December 31, 2001 and 2000, and
the results of its operations and its 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 of
America. These financial statements are the responsibility of Alcoa’s
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits
of these statements in accordance with auditing standards generally
accepted in the United States of America, which 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, assessing
the accounting principles used and significant estimates made
by management, and evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
As discussed in Notes A and S to the consolidated financial
statements, Alcoa changed its method of accounting for derivatives
in 2001.
600 Grant St., Pittsburgh, Pa.
January 9, 2002