Build-A-Bear Workshop 2013 Annual Report Download - page 39

dollars and, therefore, we believe we have only minimal exposure
at present to foreign currency exchange risks for our purchase
obligations. Historically, we have not hedged our currency risk and do
not currently anticipate doing so in the future.
We do not engage in financial transactions for trading or speculative
purposes.
ITEM 8. FINANCIAL STATEMENTS AND
SUPPLEMENTARY DATA
The financial statements and schedules are listed under Item 15(a)
and filed as part of this Annual Report on Form 10-K.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH
ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive
Officer and Chief President Bear and our Chief Operations and
Financial Bear, has evaluated the effectiveness of our disclosure
controls and procedures (as such term is defined in Rules 13a-15(e)
and 15d-15(e) under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)), as of the end of the period covered by this
report. Our disclosure controls and procedures are designed to
ensure that information required to be disclosed by us in the reports
filed or submitted under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in
the SEC’s rules and forms and is accumulated and communicated
to management, including our certifying officers, as appropriate
to allow timely decisions regarding required disclosure. Based on
the foregoing evaluation, our management, including the Chief
Executive Officer and Chief President Bear and the Chief Operations
and Financial Bear, concluded that our disclosure controls and
procedures were effective as of December 28, 2013, the end of the
period covered by this Annual Report.
It should be noted that our management, including the Chief
Executive Officer and Chief President Bear and the Chief Operations
and Financial Bear, do not expect that our disclosure controls and
procedures or internal controls will prevent all error and all fraud.
A control system, no matter how well conceived or operated, can
provide only reasonable, not absolute, assurance that the objectives
of the control system are met. Further, the design of a control system
must reflect the fact that there are resource constraints, and the
benefits of controls must be considered relative to their costs. Because
of the inherent limitations in all control systems, no evaluation of
controls can provide absolute assurance that all control issues and
instances of fraud, if any, within the Company have been detected.
These inherent limitations include the realities that judgments in
decision-making can be faulty, and that breakdowns can occur
because of simple error or mistake. Additionally, controls can be
circumvented by the individual acts of some persons, by collusion
of two or more people, or by management override of the controls.
The design of any system of controls is based in part upon certain
assumptions about the likelihood of future events, and there can
be no assurance that any design will succeed in achieving its stated
goals under all potential future conditions; over time, controls may
become inadequate because of changes in conditions, or the degree
of compliance with the policies or procedures may deteriorate.
Because of the inherent limitations in a cost-effective control system,
misstatements due to error or fraud may occur and not be detected.
Management’s Report on Internal Control Over
Financial Reporting
Our management is responsible for establishing and maintaining
adequate internal control over financial reporting, as defined in
Rule 13a-15(f) under the Securities Exchange Act of 1934. Under the
supervision and with the participation of our management, including
the Chief Executive Officer and Chief President Bear and the Chief
Operations and Financial Bear, we conducted an evaluation of the
effectiveness of our internal control over financial reporting as of
December 28, 2013. Our management, with the participation of
our Chief Executive Officer and Chief President Bear and our Chief
Operations and Financial Bear, also conducted an evaluation of our
internal control over financial reporting to determine whether any
changes occurred during the period covered by this report that have
materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting. All internal control systems
have inherent limitations, including the possibility of circumvention
and overriding the control. Accordingly, even effective internal
control can provide only reasonable assurance as to the reliability of
financial statement preparation and presentation. Further, because
of changes in conditions, the effectiveness of internal control may
vary over time.
In making its evaluation, our management used the criteria set forth
by the Committee of Sponsoring Organizations of the Treadway
Commission (“COSO”) in Internal Control-Integrated Framework
(1992 framework). Based upon this evaluation, our management has
concluded that our internal control over financial reporting as of
December 28, 2013 is effective.
Our independent registered public accounting firm, Ernst & Young
LLP, has audited the effectiveness of our internal control over
financial reporting, as stated in its report which is included herein.
BUILD- A-BEAR WORKSHOP, INC. 2013 FORM 10-K 29