Red Lobster 2000 Annual Report Download - page 29

REPORT OF THE AUDIT COMMITTEE
DARDEN RESTAURANTS
INDEPENDENT AUDITORS’ REPORT
DARDEN RESTAURANTS
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 28, 2000 and May 30, 1999, and the related con-
solidated statements of earnings, changes in stockholders’
equity, and cash flows for each of the years in the three-year
period ended May 28, 2000. These consolidated financial
statements are the responsibility of the Company’s manage-
ment. Our responsibility is to express an opinion on these
consolidated financial statements based on our audits.
We conducted our audits in accordance with audit-
ing standards generally accepted in the United States of
America. Those standards require that we plan and per-
form the audit to obtain reasonable assurance about
whether the financial statements are free of material mis-
statement. 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 Darden Restaurants, Inc. and sub-
sidiaries as of May 28, 2000, and May 30, 1999, and the
results of their operations and their cash flows for each of
the years in the three-year period ended May 28, 2000, in
conformity with accounting principles generally accepted
in the United States of America.
Orlando, Florida
June 20, 2000,
except as to Note 18, which is as of July 13, 2000
The Audit Committee of the Board of Directors is com-
posed of six 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 three times during
2000 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 compliance, 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 audited
financial statements and approved them before their
issuance. The Audit Committee recommended to the
Board that KPMG LLP be reappointed for 2001, sub-
ject to the approval of stockholders at the annual meet-
ing. The Committee also met with management to
discuss and implement the recommendations of the
Blue Ribbon Committee on Improving the Effective-
ness 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
26 DARDEN RESTAURANTS 2000 ANNUAL REPORT