CVS 2001 Annual Report Download - page 34

CVS Corporation
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Management’s Responsibility for Financial Report ing
The integrity and o bjectivity of the financial statements and related financial info rmation in this Annual Repo rt are the respo nsibility
of the management of the Co mpany. The financial statements have been prepared in co nformity with ac co unting principles generally
accepted in the United States of America and inc lude, when necessary, the best estimate and judgments of management.
The Co mpany maintains a system of internal co ntro ls desig ned to provide reaso nable assurance, at appro priate co st, that assets are
safeguarded, transactio ns are executed in ac co rdanc e with management’s autho rizatio n, and the acco unting reco rds pro vide a reliable
basis fo r the preparatio n of the financial statements. The system o f internal ac co unting c o ntro ls is co ntinually reviewed by manageme nt
and impro ved and mo dified as necessary in respo nse to c hanging business co nditio ns and the reco mmendatio ns of the Co mpany’s internal
auditors and independent audito rs.
KPMG LLP, independent auditors, were engaged to render an o pinio n regarding the fair presentatio n o f the co nso lidated financial
statements o f the Co mpany. Their acco mpanying repo rt is based upon an audit c o nducted in ac co rdanc e with auditing standards generally
accepted in the United States of America and inc luded a review o f the system of internal co ntro ls to the extent they co nsidered necessary
to suppo rt their o pinio n.
The Audit Co mmittee of the Bo ard of Directo rs, c o nsisting so lely of o utside directors, meets perio dically with management, internal
auditors and the independent audito rs to review matters relating to the Co mpany’s financial repo rting , the adequacy of internal
acco unting c o ntro ls and the sco pe and results of audit wo rk. The internal audito rs and independent auditors have free access to the
Audit Co mmittee.
Tho mas M. Ryan
Chairman of the Bo ard, President and
Chief Executive Offic er
February 1, 2002
I ndependent Auditors’ Report
Bo ard o f Directo rs and Shareho lders
CVS Co rpo ratio n:
We have audited the acco mpanying co nsolidated balanc e sheets of CVS Co rpo ration and subsidiaries as of December 29, 2001 and
December 30, 2000, and the related co nsolidated statements o f o peratio ns, shareho lders’ equity, and cash flo ws fo r the fifty- two week
perio ds ended December 29, 2001 and December 30, 2000 and the fifty-three week period ended January 1, 2000. These co nso lidated
financial statements are the respo nsibility of the Co mpany’s management. Our respo nsibility is to express an opinio n on these
co nsolidated financ ial statements based o n o ur audits.
We co nducted o ur audits in acco rdance with auditing standards generally accepted in the United States o f America. Tho se standards
require that we plan and perfo rm the audit to o btain reaso nable assurance abo ut whether the financial statements are free o f material
misstatement. An audit includes examining , o n a test basis, evidence suppo rting the amo unts and disclosures in the financial statements.
An audit also includes assessing the acco unting principles used and significant estimates made by management, as well as evaluating the
o verall financial statement presentatio n. We believe that o ur audits pro vide a reaso nable basis fo r our o pinio n.
In o ur o pinio n, the co nso lidated financial statements referred to abo ve present fairly, in all material respec ts, the financial po sitio n
of CVS Co rpo ration and subsidiaries as of December 29, 2001 and December 30, 2000, and the results o f their operatio ns and their cash
flo ws fo r the fifty-two week perio ds ended December 29, 2001 and December 30, 2000 and the fifty-three week perio d ended January 1,
2000, in co nfo rmity with acco unting principles generally accepted in the United States o f America.
KPMG LLP
Pro vidence, Rho de Island
February 1, 2002
David B. Rickard
Executive Vice President, Chief Financ ial Officer and
Chief Administrative Officer