Best Buy 2009 Annual Report Download - page 75

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B. Audit Processes and Reporting
1. The Committee will meet with the internal auditors, the independent auditors and appropriate management of
the Company to review the overall scope and plans for their respective audits, including the adequacy of
staffing and compensation. The Committee will also meet with these groups to discuss the adequacy and
effectiveness of the Company’s accounting, financial and other internal controls. Further, the Committee will
meet separately with management, its internal auditors and the independent auditor periodically, to discuss
the results of their examinations and whether there were any audit problems or difficulties encountered during
their work or with management’s responses.
2. The Committee will review:
a. Reports from the independent auditor on the critical policies and practices of the Company, and all
alternative treatments of financial information within generally accepted accounting principles that have
been discussed with management.
b. Management’s assertion on its assessment of the effectiveness of internal controls as of the end of the
most recent fiscal year.
c. All required communications between the independent auditor and the Company, such as the
management letter or accounting adjustments that were noted or proposed by the independent auditor,
but were not adopted or reflected.
d. At their discretion, any material communications between the independent auditor’s audit team and the
independent auditor’s national office regarding auditing or accounting issues presented by the
engagement.
e. The Internal Audit function including; the Internal Audit charter, significant audit results, budgeting and
staffing.
3. The Committee will discuss with the independent auditor the effect of regulatory and accounting initiatives as
well as off-balance sheet structures that may have a material impact on the Company’s financial statements.
4. The Committee will review the interim financial statements with management and the independent auditor
prior to the filing of the Company’s Quarterly Reports on Form 10-Q. Also, the Committee will discuss the
results of the quarterly review and any other matters required to be communicated to the Committee by the
independent auditor under generally accepted auditing standards. Further, the Committee will review and
discuss with management and the independent auditor earnings press releases, including the use, if any, of
‘‘pro-forma’’ or ‘‘adjusted’’ non-GAAP information, as well as earnings guidance provided to analysts and
rating agencies. The Chairperson or a designee of the Committee may represent the entire Committee for
purposes of these reviews.
5. The Committee will review with management and the independent auditor the financial statements and
disclosures under Management’s Discussion and Analysis of Financial Condition and Results of Operations, to
be included in the Company’s Annual Reports on Form 10-K. The Committee will also review with
management and the independent auditor their judgments about the quality, not just acceptability, of
accounting principles, the reasonableness of significant judgments and the clarity of the disclosures in the
financial statements. Additionally, the Committee will discuss the results of the annual audit and any other
matters required to be communicated to the Committee by the independent auditor under generally accepted
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