SUB-ITEM 77B
[KPMG LETTERHEAD APPEARS HERE]
INDEPENDENT AUDITORS' REPORT
To the Board of Trustees
AIM Investment Securities Funds:
In planning and performing our audit of the financial statements of the AIM
Advisor Flex Fund, AIM Advisor International Value Fund, and AIM Advisor Real
Estate Fund (portfolios of AIM Advisor Funds) for the year or period ended July
31, 2000, we considered its internal control, including control activities for
safeguarding securities, in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and to comply
with the requirements of Form N-SAR, not to provide assurance on internal
control.
The management of AIM Advisor Funds is responsible for establishing and
maintaining internal control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and
related costs of controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial statements for
external purposes that are fairly presented in conformity with generally
accepted accounting principles. Those controls include the safeguarding of
assets against unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control, error or fraud may occur
and not be detected. Also, projection of any evaluation of internal control to
future periods is subject to the risk that it may become inadequate because of
changes in conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of internal control would not necessarily disclose all matters
in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving
internal control and its operations, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
July 31, 2000.
This report is intended solely for the information and use of management, the
Board of Trustees of AIM Advisor Funds and the Securities and Exchange
Commission.
KPMG LLP
September 1, 2000
