Pottery Barn 2007 Annual Report Download - page 137

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What other matters did we discuss with Deloitte?
During fiscal 2007, we discussed the following other matters, among other things, with Deloitte:
• Deloitte’s responsibilities in connection with the audit of the company’s financial statements and matters
relating to Deloitte’s independence;
• Deloitte’s annual letter describing internal quality control procedures;
• The company’s internal control over financial reporting;
• Any significant issues arising during the audit and any other matters relating to the conduct of the audit of
the company’s financial statements; and
• Matters required to be discussed pursuant to Statement on Auditing Standards No. 114 (“The Auditor’s
Communication with Those Charged with Governance”), as modified and supplemented, including the
quality of the company’s accounting principles, the soundness of significant judgments and the clarity of
disclosures in the company’s financial statements.
Did we review the fees billed by Deloitte for fiscal 2007?
Yes. We reviewed and discussed the fees billed by Deloitte for services in fiscal 2007, which are described in detail
below. We determined that the provision of non-audit services was compatible with Deloitte’s independence.
Did we review the company’s audited financial statements for fiscal 2007?
Yes. We reviewed and discussed the company’s audited financial statements for fiscal 2007, and we
recommended to the Board that the company’s audited financial statements be included in the company’s Annual
Report on Form 10-K for fiscal 2007 for filing with the SEC.
Who prepared this report?
Members of the Audit and Finance Committee, Adrian T. Dillon, Ted W. Hall, Michael R. Lynch and Richard
T. Robertson, prepared this report.
AUDIT AND RELATED FEES
During fiscal 2007 and 2006, Deloitte did not perform any prohibited non-audit services for us.
Audit Fees
Deloitte billed approximately $1,410,000 for fiscal 2007 and $1,235,500 for fiscal 2006 for professional services
to audit our consolidated financial statements included in our Annual Report on Form 10-K and to review our
condensed, consolidated financial statements included in our quarterly reports on Form 10-Q. Fees for audit
services billed also consisted of fees for the assessment of the company’s internal control over financial reporting
as required by Section 404 of the Sarbanes-Oxley Act of 2002.
Audit-Related Fees
Deloitte billed approximately $31,000 for fiscal 2007 and $26,100 for fiscal 2006 for audit-related services.
Audit-related services included: (i) the audit of our 401(k) plan; and (ii) consultation on various accounting
matters.
Tax Fees
Deloitte billed a total of approximately $43,000 for fiscal 2007 and $34,960 for fiscal 2006 for tax services. Tax
services included approximately: (i) $33,500 for fiscal 2007 and $34,960 for fiscal 2006 for tax compliance
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