Red Lobster 2007 Annual Report Download - page 32

30 Darden Restaurants, Inc. Annual Report 2007
Report of Management’s
Responsibilities
The management of Darden Restaurants, Inc. is responsible for the
fairness and accuracy of the consolidated financial statements. The
consolidated financial statements have been prepared in accor-
dance with U.S. generally accepted accounting principles, using
management’s best estimates and judgments where appropriate.
The financial information throughout this report is consistent with
our consolidated financial statements.
Management has established a system of internal controls that
provides reasonable assurance that assets are adequately safeguarded
and transactions are recorded accurately, in all material respects, in
accordance with management’s authorization. We maintain a strong
audit program that independently evaluates the adequacy and
effectiveness of internal controls. Our internal controls provide for
appropriate segregation of duties and responsibilities and there are
documented policies regarding utilization of our assets and proper
financial reporting. These formally stated and regularly communicated
policies set high standards of ethical conduct for all employees.
The Audit Committee of the Board of Directors meets at least
quarterly to determine that management, internal auditors and
the independent registered public accounting firm are properly
discharging their duties regarding internal control and financial
reporting. The independent registered public accounting firm,
internal auditors and employees have full and free access to the
Audit Committee at any time.
KPMG LLP, an independent registered public accounting firm,
is retained to audit our consolidated financial statements and the
effectiveness of our internal control over financial reporting. Their
reports follow.
Clarence Otis, Jr.
Chairman of the Board and Chief Executive Officer
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 Securities Exchange Act of 1934, as amended).
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. 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.
Management assessed the effectiveness of the Company’s
internal control over financial reporting as of May 27, 2007. In making
this assessment, 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 May 27, 2007, 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.
R Report of Management’s Responsibilities and Management’s Report on
Internal Control Over Financial Reporting