●  American Airlines Group Inc. · FY 2021 

Controls & Procedures

Financial integrity remains sound at American Airlines Group Inc., according to recent internal control assessments. Management and an independent registered public accounting firm concluded that the company maintained effective controls over its financial reporting through December 31, 2021. This finding confirms the operational reliability of the systems designed to accurately record transactions, authorize expenditures, and protect corporate assets.

AAL L1 Synthesis
●  SYMBOLOGY.ONLINE l1 SYNTHESIS 

American Airlines Group Inc Controls & Procedures Synthesis

Internal Controls and Procedures Assessment Report

Management's Conclusions on Control Effectiveness

Management of American Airlines Group Inc. (AAG) and American Airlines, Inc. (American) concluded that their control systems were effective as of December 31, 2021. This conclusion was supported by both internal management assessment and external audit opinion.

Disclosure Controls and Procedures
  • Conclusion: Management concluded that AAG's and American's disclosure controls and procedures were effective as of December 31, 2021, at the reasonable assurance level.
  • Evidence: The evaluation was performed under the supervision and participation of both companies’ management, including the CEO and CFO.
Internal Control Over Financial Reporting (ICFR)
  • Conclusion: Management concluded that AAG and American maintained effective internal control over financial reporting as of December 31, 2021.
  • Evidence: The independent registered public accounting firm issued an unqualified opinion stating that the Company "maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021."

Identified Weaknesses and Deficiencies

The provided documentation does not identify any specific material weaknesses or significant deficiencies within AAG's or American's controls. The independent auditor assessed the risk that a material weakness exists but did not report one.

Inherent Limitations (Caveat)

While controls were deemed effective, management noted inherent limitations common to all control systems:

  • Limitation: Controls cannot provide absolute assurance that objectives are met, nor can they guarantee detection of all instances of fraud.
  • Evidence: Management stated that "a controls system, no matter how well designed and operated, cannot provide absolute assurance."

Changes and Remediation Efforts

Changes to Internal Controls (Noteworthy)
  • Status: There were no changes in AAG's or American's internal control over financial reporting during the three months ended December 31, 2021, that materially affected or were reasonably likely to materially affect their ICFR.
Remediation Efforts
  • No specific remediation efforts are reported because no material weaknesses or significant deficiencies were identified in the period under review.

Noteworthy Controls and Procedures

The company's internal control framework is designed to provide reasonable assurance regarding three core areas:

  1. Record Maintenance: Maintaining records that accurately and fairly reflect transactions and asset dispositions.
  2. Transaction Authorization: Ensuring receipts and expenditures are recorded correctly and made only in accordance with management and director authorizations.
  3. Asset Protection: Providing reasonable assurance regarding the prevention or timely detection of unauthorized acquisition, use, or disposition of assets.
  • No new controls or procedures were specifically introduced during this reporting period; the report focuses on the continued effectiveness of the existing framework.