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M anagement’s report on responsibility for financial reporting
and Report of independent auditors J.P. M organ Chase & Co.
To our stockholders:
The management of J.P. M organ Chase & Co. has the responsibility
for preparing the accompanying consolidated financial statements
and for their integrity and objectivity. The statements were prepared
in accordance with accounting principles generally accepted in the
United States of America. The consolidated financial statements
include amounts that are based on management’s best estimates
and judgments. M anagement also prepared the other information
in the Annual Report and is responsible for its accuracy and con-
sistency w ith the consolidated financial statements.
M anagement maintains a comprehensive system of internal con-
trol to provide reasonable assurance of the proper authorization
of transactions, the safeguarding of assets and the reliability of
the financial records. The system of internal control provides for
appropriate division of responsibility and is documented by w ritten
policies and procedures that are communicated to employees.
J.P. M organ Chase & Co. maintains a strong internal auditing
program that independently assesses the effectiveness of the sys-
tem of internal control and recommends possible improvements.
M anagement believes that at December 31, 2003, J.P. M organ
Chase & Co. maintained an effective system of internal control.
The Audit Committee of the Board of Directors reviews the
systems of internal control and financial reporting. The Com-
mittee, w hich is comprised of directors w ho are independent from
J.P. M organ Chase & Co., meets and consults regularly w ith man-
agement, the internal auditors and the independent accountants
to review the scope and results of their w ork.
To the Board of Directors and stockholders of
J.P. Morgan Chase & Co.:
In our opinion, the accompanying consolidated balance sheets
and the related consolidated statements of income, of changes
in stockholders’ equity and of cash flow s present fairly, in all
material respects, the financial position of J.P. M organ Chase &
Co. and its subsidiaries at December 31, 2003 and December 31,
2002, and the results of their operations and their cash flow s for
each of the three years in the period ended December 31, 2003,
in conformity with accounting principles generally accepted in
the United States of America. These financial statements are
the responsibility of J.P. M organ Chase & Co.’s management;
our responsibility is to express an opinion on these financial state-
ments based on our audits. We conducted our audits of these
statements in accordance w ith auditing standards generally
accepted in the United States of America, w hich require that
w e plan and perform the audit to obtain reasonable assurance
about w hether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
PRICEWATERHOUSECOOPERS LLP • 1177 AVENUE OF THE AM ERICAS • NEW YORK,NY 10036
The accounting firm of Pricew aterhouseCoopers LLP has
performed an independent audit of J.P. M organ Chase & Co.’s
financial statements. M anagement has made available to
Pricew aterhouseCoopers LLP all of J.P. M organ Chase & Co.’s
financial records and related data, as w ell as the minutes of
stockholders’ and directors’ meetings. Furthermore,
management believes that all representations made to
Pricew aterhouseCoopers LLP during its audit w ere valid and
appropriate. The accounting firm’s report appears below.
William B. Harrison, Jr.
Chairman and Chief Executive Officer
Dina Dublon
Executive Vice President and Chief Financial Officer
January 20, 2004
evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and signifi-
cant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits pro-
vide a reasonable basis for our opinion.
As discussed in Note 16 to the financial statements, J.P. M organ
Chase & Co. adopted, as of January 1, 2002, Statement of
Financial Accounting Standards No. 142, Goodw ill and Other
Intangible Assets.
January 20, 2004
J.P. Morgan Chase & Co. / 2003 Annual Report 81