Dillard's 2004 Annual Report Download - page 35

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Management’s Report on Internal Control over Financial Reporting
The financial statements, financial analysis and all other information in this Annual Report on Form 10-K were prepared
by management, who is responsible for their integrity and objectivity and for establishing and maintaining adequate
internal controls over financial reporting.
The Company’s 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
generally accepted accounting principles. The Company’s internal control over financial reporting includes those
policies and procedures that:
i. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of assets of the Company;
ii. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
Company are being made only in accordance with authorizations of management and directors of the Company;
and
iii. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
dispositions of the Company’s assets that could have a material effect on the financial statements.
There are inherent limitations in the effectiveness of any internal control, including the possibility of human error and the
circumvention or overriding of controls. Accordingly, even effective internal controls can provide only reasonable
assurances with respect to financial statement preparation. Further, because of changes in conditions, the effectiveness
of internal controls may vary over time.
Management assessed the design and effectiveness of the Company’s internal control over financial reporting as of
January 29, 2005. In making this assessment, management used the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (“COSO”) in Internal Control – Integrated Framework. Based on
management’s assessment using those criteria, it believes that, as of January 29, 2005, the Company’s internal control
over financial reporting is effective.
Deloitte & Touche LLP, an independent registered public accounting firm, has audited the financial statements of the
Company for the fiscal years ended January 29, 2005, January 31, 2004 and February 1, 2003 and has attested to
management’s assertion regarding the effectiveness of the Company’s internal control over financial reporting as of
January 29, 2005. Their report is presented on the following page. The independent registered public accountants and
internal auditors advise management of the results of their audits and make recommendations to improve the system of
internal controls. Management evaluates the audit recommendations and takes appropriate action.
F-3