Mattel 2000 Annual Report Download - page 49

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MANAGEMENT REPORT ON RESPONSIBILITY FOR FINANCIAL REPORTING
Mattel, Inc. and Subsidiaries
Management is responsible for the preparation of Mattel’s consolidated financial statements and the related financial and nonfinancial information
appearing in this annual report. The financial statements have been prepared in accordance with accounting principles generally accepted in the
United States and, in the opinion of management, present fairly Mattel’s financial position, results of operations and cash flows. The financial
statements necessarily contain some amounts that are based on the best estimates and judgments of management.
Mattel maintains accounting and internal control systems which management believes are adequate to provide reasonable assurance, in
relation to reasonable cost, as to the integrity and reliability of the financial statements and as to protection of assets from unauthorized use or
disposition. The selection and training of qualified personnel, the establishment and communication of accounting and administrative policies and
procedures, and a program of internal audit are important elements of these control systems.
Mattel’s internal auditors are directed to examine the adequacy and effectiveness of Mattel’s system of internal accounting, administrative
and operational controls. They conduct formal and systematic reviews to determine that operations are adequately controlled and to assure that
assets are effectively safeguarded.
The board of directors has appointed an audit committee, composed entirely of nonemployee directors. The committee meets regularly with
financial management, internal auditors and the independent accountants to review accounting control, auditing and financial reporting matters.
PricewaterhouseCoopers LLP, independent accountants, have been retained to audit Mattel’s consolidated financial statements. They conduct
a review of internal accounting controls to the extent required by auditing standards generally accepted in the United States and perform such
tests and related procedures as they deem necessary to arrive at an opinion on the fairness of the financial statements.
Kevin M. Farr
Chief Financial Officer
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders of Mattel, Inc.
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, of stockholders’ equity and
of cash flows present fairly, in all material respects, the financial position of Mattel, Inc. and its subsidiaries at December 31, 2000 and 1999, and
the results of their operations and their cash flows for each of the three years in the period ended December 31, 2000, in conformity with accounting
principles generally accepted in the United States. These financial statements are the responsibility of Mattel’s management; our responsibility is
to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with auditing
standards generally accepted in the United States, which require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and dis-
closures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
Los Angeles, California
January 31, 2001