Lockheed Martin 1999 Annual Report Download - page 31

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38
THE CORPORATION’S RESPONSIBILITY FOR FINANCIAL REPORTING
Lockheed Martin Corporation
The management of Lockheed Martin Corporation prepared and is responsible for the consolidated financial statements
and all related financial information contained in this report. The consolidated financial statements, which include amounts
based on estimates and judgments, have been prepared in accordance with accounting principles generally accepted in
the United States applied on a consistent basis after consideration of the Corporation’s adoption of the provisions of the
American Institute of Certified Public Accountants’ Statement of Position No. 98-5, “Reporting on the Costs of Start-Up
Activities” as discussed in Note 1 of the Notes to Consolidated Financial Statements.
The Corporation maintains a system of internal accounting controls designed and intended to provide reasonable
assurance that assets are safeguarded, transactions are properly executed and recorded in accordance with management’s
authorization, and accountability for assets is maintained. An environment that establishes an appropriate level of control
consciousness is maintained and monitored and includes examinations by an internal audit staff and by the independent
auditors in connection with their annual audit.
The Corporation’s management recognizes its responsibility to foster a strong ethical climate. Management has issued
written policy statements which document the Corporation’s business code of ethics. The importance of ethical behavior is
regularly communicated to all employees through the distribution of written codes of ethics and standards of business con-
duct, and through ongoing education and review programs designed to create a strong compliance environment.
The Audit and Ethics Committee of the Board of Directors is composed of seven outside directors. This Committee meets
periodically with the independent auditors, internal auditors and management to review their activities. Both the independ-
ent auditors and the internal auditors have unrestricted access to meet with members of the Audit and Ethics Committee,
with or without management representatives present.
The consolidated financial statements have been audited by Ernst & Young LLP, independent auditors, whose report follows.
Robert J. Stevens
Executive Vice President—Finance and Chief Financial Officer
Christopher E. Kubasik
Vice President and Controller