Costco 2012 Annual Report Download - page 43

MANAGEMENT’S REPORTS
Management’s Report on the Consolidated Financial Statements
Costco’s management is responsible for the preparation, integrity and objectivity of the accompanying
consolidated financial statements and the related financial information. The consolidated financial
statements have been prepared in conformity with U.S. generally accepted accounting principles and
necessarily include certain amounts that are based on estimates and informed judgments. The
Company’s management is also responsible for the preparation of the related financial information
included in this Annual Report on Form 10-K and its accuracy and consistency with the consolidated
financial statements.
The consolidated financial statements have been audited by KPMG LLP, an independent registered
public accounting firm, who conducted their audit in accordance with the standards of the Public
Company Accounting Oversight Board (United States). The independent registered public accounting
firm’s responsibility is to express an opinion as to the fairness with which such consolidated financial
statements present our financial position, results of operations and cash flows in accordance with U.S.
generally accepted accounting principles.
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 fiscal 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 September 2, 2012, using the criteria set forth by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – Integrated
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