CVS 2007 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2007 CVS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 78

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78

37 I 2007 Annual Report

We are responsible for establishing and maintaining effective internal control over financial reporting. Our Company’s internal control
over financial reporting includes those policies and procedures that pertain to the Company’s ability to record, process, summarize
and report a system of internal accounting controls and procedures to provide reasonable assurance, at an appropriate cost/benefit
relationship, that the unauthorized acquisition, use or disposition of assets are prevented or timely detected and that transactions are
authorized, recorded and reported properly to permit the preparation of financial statements in accordance with generally accepted
accounting principles (GAAP) and receipt and expenditures are duly authorized. In order to ensure the Company’s internal control over
financial reporting is effective, management regularly assesses such controls and did so most recently for its financial reporting as of
December 29, 2007.
We conduct an evaluation of the effectiveness of our internal controls over financial reporting based on the framework in Internal
Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. This evaluation
included review of the documentation, evaluation of the design effectiveness and testing of the operating effectiveness of controls.
Our system of internal control over financial reporting is enhanced by periodic reviews by our internal auditors, written policies and
procedures and a written Code of Conduct adopted by our Company’s Board of Directors, applicable to all employees of our Company.
In addition, we have an internal Disclosure Committee, comprised of management from each functional area within the Company,
which performs a separate review of our disclosure controls and procedures. There are inherent limitations in the effectiveness of any
system of internal controls over financial reporting.
Based on our evaluation, we conclude our Company’s internal control over financial reporting is effective and provides reasonable assur-
ance that assets are safeguarded and that the financial records are reliable for preparing financial statements as of December 29, 2007.
Ernst & Young LLP, independent registered public accounting firm, is appointed by the Board of Directors and ratified by our Company’s
shareholders. They were engaged to render an opinion regarding the fair presentation of our consolidated financial statements as well
as conducting a review of the system of internal accounting controls. Their accompanying report is based upon an audit conducted in
accordance with the Public Company Accounting Oversight Board (United States).
February 25, 2008