Big Lots 2007 Annual Report Download - page 66

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AUDIT COMMITTEE DISCLOSURE
General Information
The Audit Committee consists of three outside directors of the Board. Our common shares are listed on the NYSE.
The members of the Audit Committee have been reviewed by the Board and determined to be independent within
the meaning of all applicable SEC regulations and the listing standards of the NYSE.
The charter of the Audit Committee states that the purpose of the Audit Committee is to assist the Board in its
oversight of:
• the integrity of our financial statements and financial reporting process, and our systems of internal
accounting and financial controls;
• our compliance with legal and regulatory requirements, including our disclosure controls and
procedures;
• the annual independent audit of our financial statements, the engagement of the independent registered
public accounting firm, and the evaluation of the firm’s qualifications, independence and performance;
• the performance of our internal audit function;
• the evaluation of enterprise risk issues; and
• the fulfillment of other responsibilities set forth in its charter.
The full text of the Audit Committee’s charter is available in the Investor Relations section of our website
(www.biglots.com) under the “Corporate Governance” caption. The Audit Committee regularly reviews its
responsibilities as outlined in its charter, prepares an annual agenda to include all of its responsibilities and
conducts a self-assessment and review of the charter annually. The Audit Committee believes it fulfilled its
responsibilities under the charter in fiscal 2007.
The Audit Committee schedules its meetings with a view towards ensuring that it devotes appropriate attention to
all of its responsibilities. The Audit Committee’s meetings include, whenever appropriate, executive sessions with
the independent registered public accounting firm and the internal audit service provider, in each case without
the presence of management, and discussions with our Chief Financial Officer and internal auditor in separate
sessions, in each case without the presence of additional members of management. The Audit Committee also
meets in executive session without the presence of anyone else, whenever appropriate.
During fiscal 2007, management completed the documentation, testing and evaluation of our system of internal
control over financial reporting in accordance with the requirements set forth in Section 404 of the Sarbanes-
Oxley Act of 2002 and related regulations. The Audit Committee was apprised of the progress of the evaluation
and provided oversight and advice to management during the process. In connection with its oversight, the Audit
Committee received periodic updates provided by management and the independent registered public accounting
firm at each regularly scheduled Audit Committee meeting. The Audit Committee also reviewed the report of
management contained in our Form 10-K, as well as the independent registered public accounting firm’s Report
of Independent Registered Public Accounting Firm included in our Form 10-K related to its audit of (i) our
consolidated financial statements and financial statement schedule and (ii) the effectiveness of internal control over
financial reporting. The Audit Committee continues to oversee efforts related to our system of internal control over
financial reporting and management’s preparations for the evaluation thereof in fiscal 2008. The Audit Committee
has also reviewed key initiatives and programs aimed at strengthening the effectiveness of our internal and
disclosure control structure.
Independent Registered Public Accounting Firm
The Audit Committee engaged Deloitte & Touche LLP as our independent registered public accounting firm to
audit our financial statements for fiscal 2007. Deloitte & Touche LLP has served as our independent registered
public accounting firm since October 1989. The Audit Committee annually selects our independent registered
public accounting firm.