Entergy 2002 Annual Report Download - page 45

Management of Entergy Corporation and its subsidiaries has
prepared and is responsible for the financial statements and
related financial information included herein. The financial
statements are based on accounting principles generally
accepted in the United States of America. Financial infor-
mation included elsewhere in this report is consistent with the
financial statements.
To meet their responsibilities with respect to financial
information, management maintains and enforces a system of
internal accounting controls designed to provide reasonable
assurance, on a cost-effective basis, as to the integrity, objectivity,
and reliability of the financial records, and as to the protection
of assets. This system includes communication through written
policies and procedures, an employee Code of Entegrity, and an
organizational structure that provides for appropriate division
of responsibility and the training of personnel. This system is
also tested by a comprehensive internal audit program.
The Audit Committee of the Board of Directors, composed
solely of Directors who are not employees of Entergy, meets
with the independent auditors, management, and internal
accountants periodically to discuss internal accounting
controls and auditing and financial reporting matters. The
Audit Committee appoints the independent auditors annually
and reviews with the independent auditors the scope and
results of the audit effort. The Committee also meets
periodically with the independent auditors and the chief
internal auditor without management, providing free access to
the Committee.
Independent public accountants provide an objective
assessment of the degree to which management meets its
responsibility for fairness of financial reporting. They regularly
evaluate the system of internal accounting controls and
perform such tests and other procedures as they deem neces-
sary to reach and express an opinion on the fairness of the
financial statements.
Management believes that these policies and procedures
provide reasonable assurance that its operations are carried out
with a high standard of business conduct.
J. WAYNE LEONARD C. JOHN WILDER
Chief Executive Officer Executive Vice President
and Chief Financial Officer
To the Board of Directors and Shareholders of
Entergy Corporation:
We have audited the accompanying consolidated balance sheets
of Entergy Corporation and subsidiaries as of December 31,
2002 and 2001, and the related consolidated statements of
income; of retained earnings, comprehensive income, and
paid-in capital; and of cash flows for each of the three years in
the period ended December 31, 2002. These financial state-
ments are the responsibility of the Corporation’s management.
Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with auditing
standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial state-
ments are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and signifi-
cant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial statements present
fairly, in all material respects, the financial position of Entergy
Corporation and subsidiaries as of December 31, 2002 and 2001,
and the results of their operations and their cash flows for each of
the three years in the period ended December 31, 2002, in
conformity with accounting principles generally accepted in the
United States of America.
As discussed in Note 1 to the consolidated financial statements,
Entergy Corporation adopted the provisions of Statement of
Financial Accounting Standards No. 142 “Goodwill and Other
Intangible Assets” in 2002 and Statement of Financial Accounting
Standards No. 133 “Accounting for Derivative Instruments and
Hedging Activities” in 2001.
Deloitte & Touche LLP
New Orleans, Louisiana
February 21, 2003
ENTERGY CORPORATION AND SUBSIDIARIES 2002 43
REPORT OF MANAGEMENT INDEPENDENT AUDITORS’ REPORT