Walmart 2003 Annual Report Download - page 54

Report of Management
Management of Wal-Mart Stores Inc. is responsible for the integrity and objectivity of the financial statements and other
information presented in this report. These financial statements have been prepared in conformity with accounting
principles generally accepted in the United States. The preparation of financial statements requires certain estimates and
judgments, which are based upon currently available information and management’s view of current conditions and
circumstances.
Management has developed and maintains a system of internal and disclosure controls, including an extensive internal
audit program. These controls are designed to provide reasonable assurance that the Company’s assets are protected from
improper use and that Wal-Mart’s accounting records provide a reliable basis for the preparation of financial statements.
We continually review, improve and modify these systems and programs in response to changes in business conditions
and operations and the recommendations made by Wal-Mart’s internal and external auditors. We believe that the system
of internal and disclosure controls provides reasonable assurance that Wal-Mart’s assets are safeguarded and that the
financial information disclosed is reliable.
Our Company was founded on the belief that open communications and the highest standard of ethics are necessary to
be successful. Our long-standing “open door” communication policy helps management be aware of and deal with issues
in a timely and effective manner. Through the open door policy all Associates are encouraged to inform management at
the appropriate level when they are concerned about any matter pertaining to the Company.
Wal-Mart has adopted a Statement of Ethics to guide our Associates in the continued observance of high ethical
standards such as honesty, integrity and compliance with the law in the conduct of the Company’s business. Familiarity
and compliance with the Statement of Ethics is periodically reviewed and acknowledged in writing by all management
Associates. The Company also has in place a Related Party Transaction Policy. This policy applies to all Officers and
Directors of the Company and requires material related party transactions to be reviewed by the Audit Committee of
the Board of Directors. Annually, the Company’s Officers and Directors report material related party transactions to
the Company and Officers acknowledge their familiarity and compliance with the policy.
We retain Ernst & Young LLP, independent auditors, to audit the Company’s financial statements. Their audits are
performed in accordance with generally accepted auditing standards. We have made available to Ernst & Young LLP
all financial records and related data.
The Board of Directors, through the activities of its Audit Committee consisting solely of outside directors, provides
oversight of the process of reporting financial information. The Committee stays informed of the financial condition of
the Company and regularly reviews its financial policies and procedures, the independence of the Company’s independent
auditors, its internal accounting controls and the objectivity of its financial reporting. Both the Company’s independent
auditors and the internal auditors have free access to the Audit Committee and meet with the Committee periodically,
both with and without management present.
H. Lee Scott Thomas M. Schoewe
President and Chief Executive Officer Executive Vice President and Chief Financial Officer
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