Albertsons 2006 Annual Report Download - page 32

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The company’s internal control over financial reporting is designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. The company’s internal control over financial
reporting includes those policies and procedures that:
i. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company;
ii. provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management
and directors of the company; and
iii. provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition and
use or disposition of the company’s assets that could have a material effect on the financial statements.
There are inherent limitations in the effectiveness of any internal control, including the possibility of human
error and the circumvention or overriding of controls. Accordingly, even effective internal controls can provide
only reasonable assurances with respect to financial statement preparation. Further, because of changes in
conditions, the effectiveness of internal controls may vary over time.
Management assessed the design and effectiveness of the company’s internal control over financial
reporting as of February 25, 2006. In making this assessment, management used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission in Internal Control—Integrated
Framework. Based on management’s assessment using this framework, it believes that, as of February 25, 2006,
the company’s internal control over financial reporting is effective.
Management’s assessment of the effectiveness of the company’s internal control over financial reporting as
of February 25, 2006, has been audited by KPMG LLP, an independent registered public accounting firm. Their
report, which is set forth on pages F-5–F-6 of this report, expresses an unqualified opinion on management’s
assessment and on the effectiveness of the company’s internal control over financial reporting as of February 25,
2006.
Changes in Internal Control Over Financial Reporting
During the fiscal quarter ended February 25, 2006, there has been no change in the company’s internal
control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that has materially
affected, or is reasonably likely to materially affect, the company’s internal control over financial reporting.
ITEM 9B. OTHER INFORMATION
None.
32