Costco 2005 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2005 Costco 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 67

  • 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

Because of its inherent limitations, internal control over financial reporting may not prevent or detect mis-
statements. Therefore, even those systems determined to be effective can provide only reasonable assurance with
respect to financial statement preparation and presentation.
Under the supervision and with the participation of our management, we assessed the effectiveness of our
internal control over financial reporting as of August 28, 2005, using the criteria set forth by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework.
Based on its assessment, management has concluded that our internal control over financial reporting was effec-
tive as of August 28, 2005.
KPMG LLP, an independent registered public accounting firm, has audited management’s assessment of the
effectiveness of our internal control over financial reporting as of August 28, 2005, as stated in their audit report
herein.
Controls and Procedures
Our management, including the Chief Executive Officer (principal executive officer) and Chief Financial
Officer (principal financial officer), evaluated the effectiveness of our disclosure controls and procedures pur-
suant to Rule 13a-15(b) under the Exchange Act, as of August 28, 2005. Based on that evaluation, our Chief
Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective
in ensuring that information required to be disclosed by us in the reports we file or submit under the Exchange
Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and
forms.
There were no changes in internal control over financial reporting during the fiscal fourth quarter ended
August 28, 2005, that have materially affected, or are reasonably likely to materially affect, our internal control
over financial reporting.
James D. Sinegal
President,
Chief Executive Officer
Richard A. Galanti
Executive Vice President,
Chief Financial Officer
31