Valero 2002 Annual Report Download - page 22

The management of Valero Energy Corporation and subsidiaries (the Company) is responsible for the preparation
and reliability of the condensed consolidated financial statements included in this report and for ascertaining that the
data accurately reflects the financial position, results of operations and cash flows of the Company. The condensed
consolidated financial statements were prepared in accordance with generally accepted accounting principles
appropriate in the circumstances and accordingly include amounts that are based on estimates and judgments made
by management. Our independent auditors, Ernst & Young, have audited the Company’s consolidated financial
statements from which the condensed consolidated financial statements have been derived.
The Company maintains a system of internal controls, including an internal audit program, which it believes
provides reasonable assurance that the accounting records provide a reliable basis for the preparation of the
condensed consolidated financial statements and provides reasonable assurance that transactions and events
are recorded properly, that adequate accounting records are maintained, and that assets are safeguarded
against loss or unauthorized use. The Company reviews, modifies and improves its system of internal controls
in response to changes in business conditions and operations.
The Audit Committee, which is composed solely of directors who are not officers or employees of the Company, is
responsible for providing oversight and assurance that management fulfills its responsibilities in connection
with financial reporting. The Audit Committee generally meets three times a year with the independent auditors,
internal auditors and management of the Company. The independent auditors and internal auditors have
full, free and separate access to meet with the Audit Committee to discuss the results of their audit and reviews.
The Audit Committee reports the results of its meetings and its recommendations to the Board of Directors
on a regular basis, including its recommendation for the appointment of the Company’s independent auditors.
COMPANY REPORT ON
CONDENSED FINANCIAL STATEMENTS
REPORT OF
INDEPENDENT AUDITORS
To the Board of Directors and Stockholders of Valero Energy Corporation and Subsidiaries
We have audited, in accordance with auditing standards generally accepted in the United States, the consolidated
balance sheet of Valero Energy Corporation and subsidiaries as of December 31, 2002, and the related consolidated
statements of income, stockholders’ equity, cash flows and comprehensive income for the year then ended,
appearing in the Company’s 2002 Annual Report on Form 10-K (not presented herein). In our report dated
March 19, 2003, also appearing in that Annual Report, we expressed an unqualified opinion on those consolidated
financial statements. The consolidated financial statements of Valero Energy Corporation and subsidiaries as
of December 31, 2001, and for each of the two years in the period ended December 31, 2001, also appearing in that
Annual Report, were audited by other auditors who have ceased operations and whose report dated March 5, 2002
expressed an unqualified opinion on those statements before the revisions described in Notes 20 and 27.
Also, in our report dated March 19, 2003, we expressed an opinion that such reclassification adjustments made
to revise the 2001 and 2000 financial statements are appropriate and have been properly applied.
In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of
December 31, 2002, and the related condensed consolidated statements of income and cash flows for the year
then ended is fairly stated, in all material respects, in relation to the consolidated financial statements from
which it has been derived.
Ernst & Young, LLP, San Antonio, Texas, March 19, 2003