Dollar General 2005 Annual Report Download - page 35

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31
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
To the Board of Directors and Shareholders of
Dollar General Corporation
Goodlettsville, Tennessee
We have audited management's assessment, included
in the accompanying Management's Annual Report on
Internal Control Over Financial Reporting, that Dollar
General Corporation and subsidiaries maintained effective
internal control over financial reporting as of February 3,
2006, based on criteria established in Internal Control –
Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission
(the COSO criteria). Dollar General Corporation’s manage-
ment is responsible for maintaining effective internal
control over financial reporting and for its assessment of
the effectiveness of internal control over financial report-
ing. Our responsibility is to express an opinion on
management's assessment and an opinion on the
effectiveness of the Company's internal control over
financial reporting based on our audit.
We conducted our audit 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 assur-
ance about whether effective internal control over
financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal
control over financial reporting, evaluating management’s
assessment, testing and evaluating the design and
operating effectiveness of internal control, and performing
such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a
reasonable basis for our opinion.
A company’s internal control over financial reporting
is a process 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 princi-
ples. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and disposi-
tions of the assets of the company; (2) 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 (3) provide reasonable
assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the
company's assets that could have a material effect on
the financial statements.
Because of its inherent limitations, internal control
over financial reporting may not prevent or detect mis-
statements. Also, projections of any evaluation of effective-
ness to future periods are subject to the risk that controls
may become inadequate because of changes in condi-
tions, or that the degree of compliance with the policies or
procedures may deteriorate.
In our opinion, management's assessment that Dollar
General Corporation and subsidiaries maintained effective
internal control over financial reporting as of February 3,
2006, is fairly stated,in all material respects, based on the
COSO criteria. Also, in our opinion, Dollar General
Corporation and subsidiaries maintained, in all material
respects,effective internal control over financial reporting
as of February 3, 2006, based on the COSO criteria.
We have also audited, in accordance with the stan-
dards of the Public Company Accounting Oversight Board
(United States), the consolidated balance sheets of Dollar
General Corporation and subsidiaries as of February 3,
2006 and January 28, 2005, and the related consolidated
statements of income, shareholders’ equity, and cash flows
for each of the three years in the period ended February 3,
2006 and our report dated March 16, 2006 expressed an
unqualified opinion thereon.
Nashville, Tennessee
March 16, 2006