Red Lobster 1999 Annual Report Download - page 5

Report
of the Audit Committee
26
Independent Auditors’
Report
The Audit Committee of the Board of Directors is com-
posed of four outside directors. Its primary function is
to oversee the Company’s system of internal controls,
financial reporting practices and audits to ensure that
their quality, integrity and objectivity are sufficient to
protect stockholder assets.
The Audit Committee met twice during 1999 to review
the overall audit scope, plans and results of the internal
auditors and independent auditors, the Company’s
internal controls, emerging accounting issues, Year 2000
preparedness, audit fees and intangible asset values.
The Committee met separately with the independent
auditors without management present to discuss the
audit. Acting with the other Board members, the
Committee reviewed the Company’s annual financial
statements and approved them before their issuance.
The Audit Committee recommended to the Board that
KPMG LLP be reappointed for 2000, subject to the
approval of stockholders at the annual meeting. The
Committee also met with management to discuss the
report and recommendations of the Blue Ribbon
Committee on Improving the Effectiveness of Corporate
Audit Committees.
The Audit Committee is satisfied that the internal
control system is adequate and that the stockholders of
Darden Restaurants, Inc. are protected by appropriate
accounting and auditing procedures.
Jack A. Smith
Chairman, Audit Committee
The Board of Directors and Stockholders
Darden Restaurants, Inc.
We have audited the accompanying consolidated balance
sheets of Darden Restaurants, Inc. and subsidiaries as
of May 30, 1999, and May 31, 1998, and the related
consolidated statements of earnings (loss), changes in
stockholders’ equity, and cash flows for each of the
years in the three-year period ended May 30, 1999.
These consolidated financial statements are the respon-
sibility 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 generally
accepted auditing standards. 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 examin-
ing, 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 Darden Restaurants, Inc. and
subsidiaries as of May 30, 1999, and May 31, 1998,
and the results of their operations and their cash flows
for each of the years in the three-year period ended
May 30, 1999, in conformity with generally accepted
accounting principles.
Orlando, Florida
June 18, 1999