Staples 2005 Annual Report Download - page 34

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18
(Communication with Audit Committees). The independent registered public accounting firm also provided the Audit
Committee with the written disclosures and the letter required by Independence Standards Board Standard No. 1
(Independence Discussions with Audit Committees). The Audit Committee discussed with the independent registered
public accounting firm the independent registered public accounting firm’s independence from management and the
Company, including the matters in the written disclosures required by the Independence Standards Board, and
considered the compatibility of non-audit related services provided to the Company by the independent registered
public accounting firm with the independent registered public accounting firm’s independence.
The Audit Committee discussed with the Company’s internal auditors and independent registered public
accounting firm the overall scope and plans for their respective audits. The Audit Committee meets with the internal
auditors and independent registered public accounting firm, with and without management present, to discuss the
results of their examinations, their evaluations of the Company’s internal controls, and the overall quality of the
Company’s financial reporting.
In reliance on the reviews and discussions referred to above, the Audit Committee recommended to the
Company’s Board of Directors, and the Board approved, that the Company’s audited financial statements be included
in the Company’s Annual Report on Form 10-K for the year ended January 28, 2006 for filing with the Securities and
Exchange Commission.
Audit Committee:
Paul F. Walsh, Chairman
Mary Elizabeth Burton
Gary L. Crittenden
Independent Registered Public Accounting Firm’s Fees
In the interest of ensuring our independent registered public accounting firm’s independence, we consider it
important to maintain a low ratio of our non-audit fees to our audit fees. In the 2005 fiscal year, this ratio was
approximately 0.38:1.
Audit Fees
Ernst & Young LLP billed us an aggregate of approximately $3.3 million and $3.0 million in fiscal years 2005 and
2004, respectively, for professional services rendered in connection with our annual audit, the audit of our internal
controls over financial reporting, statutory filings and registration statements.
Audit-Related Fees
Ernst & Young LLP billed us an aggregate of approximately $62,000 and $211,000 in fiscal years 2005 and 2004,
respectively, for services related to assistance with internal control reporting, acquisition due diligence, employee
benefit plan audits, accounting consultation and compliance with regulatory requirements.
Tax Fees
Ernst & Young LLP billed us an aggregate of approximately $1.2 million and $2.5 million in fiscal years 2005 and
2004, respectively, for services related to tax compliance, tax planning and tax advice. For fiscal years 2005 and 2004,
approximately $326,000 and $1.2 million, respectively, of these fees related to tax compliance.
All Other Fees
Ernst & Young LLP did not bill Staples in fiscal years 2005 or 2004 for services other than those described above.
Pre-Approval Policy and Procedures
The Audit Committee has adopted policies and procedures relating to the approval of all audit and non-audit
services that are to be performed by our independent registered public accounting firm. This policy provides that we
will not engage our independent registered public accounting firm to render audit or non-audit services (other than de
minimus non-audit services as defined by the Sarbanes-Oxley Act) unless the service is specifically approved in