Jack In The Box 2005 Annual Report Download - page 40

Management’s Report on Internal Control Over Financial Reporting.
Management is responsible for establishing and maintaining adequate internal control over financial reporting (as
defined in Rule 13a-15(f) under the Exchange Act). The Company's internal control over financial reporting is designed to
provide reasonable assurance to the Company’ s management and Board of Directors regarding the preparation and fair
presentation of published 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.
Management assessed the effectiveness of the Company’ s internal control over financial reporting as of October 2,
2005. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of
the Treadway Commission (“COSO”) in Internal Control-Integrated Framework. Management has concluded that, as of October
2, 2005, the Company's internal control over financial reporting was effective based on these criteria.
The Company’ s independent registered public accounting firm, KPMG LLP, has issued an audit report on our
assessment of our internal control over financial reporting, which follows.
Report of Independent Registered Public Accounting Firm.
The Board of Directors and Stockholders
Jack in the Box Inc.:
We have audited management’ s assessment, included in the accompanying Management’ s Report on Internal Control
Over Financial Reporting, that Jack in the Box Inc. (Jack in the Box) maintained effective internal control over financial
reporting as of October 2, 2005, based on criteria established in Internal Control–Integrated Framework issued by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO). Jack in the Box’ s management is responsible for
maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over
financial reporting. 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 assurance 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 principles. 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 dispositions
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 misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
In our opinion, management’ s assessment that Jack in the Box maintained effective internal control over financial
reporting as of October 2, 2005, is fairly stated, in all material respects, based on criteria established in COSO. Also, in our
opinion, Jack in the Box maintained, in all material respects, effective internal control over financial reporting as of October 2,
2005, based on criteria established in COSO.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), the consolidated balance sheets of Jack in the Box Inc. and subsidiaries as of October 2, 2005 and October 3, 2004, and
the related consolidated statements of earnings, cash flows, and stockholders’ equity, for the fifty-two weeks ended October 2,
2005, fifty-three weeks ended October 3, 2004, and fifty-two weeks ended September 28, 2003.
KPMG LLP
San Diego, California
December 7, 2005
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