CarMax 2007 Annual Report Download - page 47

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37
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
The Board of Directors and Shareholders
CarMax, Inc.:
We have audited the accompanying consolidated balance sheets of CarMax, Inc. and subsidiaries (the “Company”)
as of February 28, 2007 and 2006, and the related consolidated statements of earnings, shareholders’ equity, and
cash flows for each of the fiscal years in the three-year period ended February 28, 2007. In connection with our
audits of the consolidated financial statements, we also have audited the financial statement Schedule II – valuation
and qualifying accounts as of and for each of the fiscal years in the three-year period ended February 28, 2007.
These consolidated financial statements and financial statement schedule are the responsibility of the Company’ s
management. Our responsibility is to express an opinion on these consolidated financial statements and financial
statement schedule based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of CarMax, Inc. and subsidiaries as of February 28, 2007 and 2006, and the results of their
operations and their cash flows for each of the fiscal years in the three-year period ended February 28, 2007, in
conformity with U.S. generally accepted accounting principles. Also in our opinion, the related financial statement
schedule, when considered in relation to the basic consolidated financial statements taken as a whole, present fairly,
in all material respects, the information set forth therein.
As discussed in Notes 2(A) and 10(C) to the consolidated financial statements, the Company adopted the provisions
of Statement of Financial Accounting Standards No. 123 (revised 2004) (Statement 123(R)), Share-Based Payment,
effective March 1, 2006, using the modified retrospective transition method. As discussed in Note 8(A) to the
consolidated financial statements, the Company adopted the provisions of Statement of Financial Accounting
Standards No. 158, Employers’ Accounting for Defined Pension and Other Postretirement Plans, effective
February 28, 2007.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), the effectiveness of the Company’ s internal control over financial reporting as of February 28, 2007, based
on criteria established in Internal Control–Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO), and our report dated April 25, 2007, expressed an unqualified
opinion on management’ s assessment of, and the effective operation of, internal control over financial reporting.
Richmond, Virginia
April 25, 2007