Costco 2008 Annual Report Download - page 48

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Disclosure Controls and Procedures
As of the end of the period covered by this Annual Report on Form 10-K we performed an evaluation
under the supervision and with the participation of management, including our Chief Executive Officer
and Chief Financial Officer, of our disclosure controls and procedures (as defined in Rules 13a-15(e) or
15d-15(e) under the Securities and Exchange Act of 1934 (the Exchange Act)). Based upon that
evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the
period covered by this Annual Report, our disclosure controls and procedures are effective.
There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f)
or 15d-15(f) of the Exchange Act) during our most recently completed year that has materially affected,
or is reasonably likely to materially affect, our internal control over financial reporting.
Management’s Annual 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 Exchange Act. Our internal control over
financial reporting is designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with U.S.
generally accepted accounting principles and includes those policies and procedures that: (1) pertain
to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions
and the dispositions of our assets; (2) provide reasonable assurance that our transactions are recorded
as necessary to permit preparation of financial statements in accordance with generally accepted
accounting principles, and that our receipts and expenditures are being made only in accordance with
appropriate authorizations; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of our assets that could have a material effect
on our financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. 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 31, 2008, 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 effective as of August 31, 2008.
James D. Sinegal
President
Chief Executive Officer
Richard A. Galanti
Executive Vice President
Chief Financial Officer
46