Hess 2002 Annual Report Download - page 47

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45
REPORT OF MANAGEMENT
Amerada Hess Corporation and Consolidated Subsidiaries
The consolidated financial statements of Amerada Hess Corporation
and consolidated subsidiaries were prepared by and are the respon-
sibility of management. These financial statements conform with
generally accepted accounting principles and are, in part, based on
estimates and judgements of management. Other information
included in this Annual Report is consistent with that in the consoli-
dated financial statements.
The Corporation maintains a system of internal controls designed to
provide reasonable assurance that assets are safeguarded and that
transactions are properly executed and recorded. Judgements are
required to balance the relative costs and benefits of this system of
internal controls.
The Corporation’s consolidated financial statements have been
audited by Ernst & Young LLP, independent auditors, who have been
selected by the Audit Committee and the Board of Directors and
approved by the stockholders. Ernst & Young LLP assesses the Cor-
poration’s system of internal controls and performs tests and proce-
dures that they consider necessary to arrive at an opinion on the
fairness of the consolidated financial statements.
The Audit Committee of the Board of Directors consists solely of
independent directors. The Audit Committee meets periodically with
the independent auditors, internal auditors and management
to review and discuss the annual audit scope and plans, the ade-
quacy of staffing, the system of internal controls and the results of
examinations. At least annually, the Audit Committee meets with the
independent auditors and with the internal auditors without manage-
ment present. The Audit Committee also reviews the Corporation’s
financial statements with management and the independent audi-
tors. This review includes a discussion of accounting principles, sig-
nificant judgements inherent in the financial statements, disclosures
and such other matters required by generally accepted auditing
standards. Ernst & Young LLP and the Corporation’s internal auditors
have unrestricted access to the Audit Committee.
John B. Hess
Chairman of the Board and Chief Executive Officer
John Y. Schreyer
Executive Vice President and Chief Financial Officer