Alcoa 2014 Annual Report Download - page 110

Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of Alcoa Inc.
In our opinion, the accompanying consolidated balance sheet and the related statements of consolidated operations,
consolidated comprehensive loss, changes in consolidated equity, and consolidated cash flows present fairly, in all
material respects, the financial position of Alcoa Inc. and its subsidiaries (the “Company”) at December 31, 2014 and
2013, and the results of their operations and their cash flows for each of the three years in the period ended December 31,
2014 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion,
the Company maintained, in all material respects, effective internal control over financial reporting as of December 31,
2014, based on criteria established in Internal Control—Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these
financial statements, for maintaining effective internal control over financial reporting and for its assessment of the
effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal
Control over Financial Reporting. Our responsibility is to express opinions on these financial statements and on the
Company’s internal control over financial reporting based on our integrated audits. We conducted our audits in
accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free
of material misstatement and whether effective internal control over financial reporting was maintained in all material
respects. Our audits of the financial statements included 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. Our audit of internal control over financial
reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the
assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances.
We believe that our audits provide a reasonable basis for our opinions.
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
accounting principles generally accepted in the United States of America. A company’s internal control over financial
reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America, and that receipts and expenditures of the
company are being made only in accordance with authorizations of management and directors of the company; and
(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’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.
As described in the accompanying Management’s Report on Internal Control over Financial Reporting, management has
excluded Firth Rixson from its assessment of internal control over financial reporting as of December 31, 2014 because it
was acquired by the Company in a purchase business combination in November 2014. We have also excluded Firth
Rixson from our audit of internal control over financial reporting. Firth Rixson is a 100% owned subsidiary whose total
assets (excluding goodwill and intangible assets) and total sales represent 4% and less than 1%, respectively, of the related
consolidated financial statement amounts of the Company as of and for the year ended December 31, 2014.
PricewaterhouseCoopers LLP
Pittsburgh, Pennsylvania
February 19, 2015
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