Kroger 2014 Annual Report Download - page 56
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AU D I T C O M M I T T E E R E P O R T
TheprimaryfunctionoftheAuditCommitteeistorepresentandassisttheBoardofDirectorsinfulfilling
itsoversightresponsibilitiesregardingtheCompany’sfinancialreportingandaccountingpracticesincluding
the integrity of the Company’s financial statements; the Company’s compliance with legal and regulatory
requirements;theindependentpublicaccountants’qualificationsandindependence;theperformanceofthe
Company’sinternalauditfunctionandindependentpublicaccountants;andthepreparationofthisreport
thatSECrulesrequirebeincludedintheCompany’sannualproxystatement.TheAuditCommitteeperforms
thisworkpursuanttoawrittencharterapprovedbytheBoardofDirectors.TheAuditCommitteecharter
mostrecentlywasrevisedduringfiscal2012andisavailableontheCompany’swebsiteatir.kroger.com.The
AuditCommitteehasimplementedprocedurestoassistitduringthecourseofeachfiscalyearindevotingthe
attentionthatisnecessaryandappropriatetoeachofthemattersassignedtoitundertheCommittee’scharter.
The Audit Committee held five meetings during fiscal year 2014. The Audit Committee meets separately
withtheCompany’sinternalauditorandPricewaterhouseCoopersLLP,theCompany’sindependentpublic
accountants, without management present, to discuss the results of their audits, their evaluations of the
Company’s internal controls over financial reporting, and the overall quality of the Company’s financial
reporting.TheAuditCommitteealsomeetsseparatelywiththeCompany’sChiefFinancialOfficerandGeneral
Counselwhenneeded.Followingtheseseparatediscussions,theAuditCommitteemeetsinexecutivesession.
Management of the Company is responsible for the preparation and presentation of the Company’s
financial statements, the Company’s accounting and financial reporting principles and internal controls,
and procedures that are designed to provide reasonable assurance regarding compliance with accounting
standards and applicable laws and regulations. The independent public accountants are responsible for
auditingtheCompany’sfinancialstatementsandexpressingopinionsastothefinancialstatements’conformity
withgenerallyacceptedaccountingprinciplesandtheeffectivenessoftheCompany’sinternalcontrolover
financial reporting.
In the performance of its oversight function, the Audit Committee has reviewed and discussed
with management and PricewaterhouseCoopers LLP the audited financial statements for the year ended
January 31, 2015, management’s assessment of the effectiveness of the Company’s internal control over
financialreportingasofJanuary31,2015,andPricewaterhouseCoopersLLP’sevaluationoftheCompany’s
internalcontroloverfinancialreportingasofthatdate.TheAuditCommitteehasalsodiscussedwiththe
independentpublicaccountantsthemattersthattheindependentpublicaccountantsmustcommunicateto
theAuditCommitteeunderapplicablerequirementsofthePublicCompanyAccountingOversightBoard.
With respect to the Company’s independent public accountants, the Audit Committee, among other
things,discussedwithPricewaterhouseCoopersLLPmattersrelatingtoitsindependenceandhasreceived
the written disclosures and the letter from the independent public accountants required by applicable
requirements of the Public Company Accounting Oversight Board regarding the independent public
accountants’communications withtheAuditCommitteeconcerningindependence.TheAuditCommittee
hasreviewedandapprovedinadvanceallservicesprovidedtotheCompanybyPricewaterhouseCoopersLLP.
TheAuditCommitteeannuallyreviewsPricewaterhouseCoopersLLP’sindependenceandperformance
inconnectionwiththeAuditCommittee’sresponsibilityfortheappointmentandoversightoftheCompany’s
independentpublicaccountants.TheAuditCommitteeconsiders,amongotherthings,PricewaterhouseCoopers
LLP’s historical and recent performance on the Company’s audit, including an internal survey of their
servicequalitybymembersofmanagementandtheAuditCommittee.TheAuditCommitteereviewsrecent
Public Company Accounting Oversight Board reports on PricewaterhouseCoopers LLP and its peer firms,
and considers PricewaterhouseCoopers LLP’s tenure as the Company’s independent public accountants
andtheirfamiliaritywithouroperations,businesses,accountingpoliciesandpracticesandinternalcontrol
overfinancialreporting.Further,inconjunctionwiththemandatedrotationofthepublicaccountants’lead
engagementpartner,theAuditCommitteeisdirectlyinvolvedintheselectionofPricewaterhouseCoopers
LLP’sleadengagementpartnereveryfiveyears.TheAuditCommitteebelievesthatthecontinuedretention
of PricewaterhouseCoopers LLP to serve as the Company’s independent public accountants is in the best
interestsoftheCompanyanditsshareholders.