Home Depot 2005 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2005 Home Depot 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 84

  • 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
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84

Report of Independent Registered Public Accounting Firm
The Board of Directors and Stockholders
The Home Depot, Inc.:
We have audited the accompanying Consolidated Balance Sheets of The Home Depot, Inc. and
subsidiaries as of January 29, 2006 and January 30, 2005, and the related Consolidated Statements of
Earnings, Stockholders’ Equity and Comprehensive Income, and Cash Flows for each of the fiscal years
in the three-year period ended January 29, 2006. These Consolidated Financial Statements are the
responsibility of the Company’s management. Our responsibility is to express an opinion on these
Consolidated Financial Statements based on our audits.
We conducted our audits 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 assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the Consolidated Financial Statements referred to above present fairly, in all material
respects, the financial position of The Home Depot, Inc. and subsidiaries as of January 29, 2006 and
January 30, 2005, and the results of their operations and their cash flows for each of the fiscal years in
the three-year period ended January 29, 2006, in conformity with U.S. generally accepted accounting
principles.
As discussed in Note 1 to the Consolidated Financial Statements, effective February 3, 2003, the
Company changed its method of accounting for cash consideration received from a vendor to conform
to Emerging Issues Task Force No. 02-16 and adopted the fair value method of recording stock-based
compensation expense in accordance with Statement of Financial Accounting Standards No. 123.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the effectiveness of The Home Depot, Inc. and subsidiaries’ internal control
over financial reporting as of January 29, 2006, based on criteria established in Internal Control –
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO), and our report dated March 22, 2006 expressed an unqualified opinion on
management’s assessment of, and the effective operation of, internal control over financial reporting.
/s/ KPMG LLP
Atlanta, Georgia
March 22, 2006, except as to note 12
which is as of March 24, 2006
35