Circuit City 2006 Annual Report Download - page 26

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For the year ended December 31, 2006, we were not subject to the internal controls certification and attestation requirements
of Section 404 of the Sarbanes-Oxley Act of 2002 because we were not an accelerated filer as defined by the SEC. For the
year ended December 31, 2007, we will be subject to the requirements of Section 404 that management provide an
assessment of the effectiveness of the Company’s internal control over financial reporting and the Company’s independent
registered public accounting firm will be required to audit that assessment.
We are working to achieve compliance with the requirements of Section 404. We will be dedicating substantial time and
resources to documentation and review of our procedures in 2007. We may also need to engage outside consultants to assist
us. We have not completed this process or its assessment, due to the complexities of our decentralized structure, the number
of accounting systems in use and the lack of qualified personnel to devote to the process. In addition to the weaknesses
reported as of December 31, 2006 discussed under the caption “Disclosure Controls and Procedures,” we have identified
numerous other internal control deficiencies that may affect the timeliness and accuracy of recording transactions and which,
individually or in the aggregate, could become material weaknesses in future periods if not remediated.
We have a significant amount of work to do to remediate the items we have identified. In the course of completing our
evaluation and testing we may identify further deficiencies and weaknesses that will need to be addressed and will require
remediation. We may not be able to correct all such internal control deficiencies in a timely manner and may find that a
material weakness or weaknesses exist. As a result, management may not be able to issue an unqualified opinion on the
effectiveness of the Company’s internal control over financial reporting as of December 31, 2007.
Item 9B. Other Information.
None.
PART III
Item 10. Directors, Executive Officers and Corporate Governance.
The information required by Item 10 of Part III is hereby incorporated by reference from the Company’s Proxy Statement for
the 2007 Annual Meeting of Stockholders which we anticipate filing April 30, 2007 (the “Proxy Statement”).
Item 11. Executive Compensation.
The information required by Item 11 of Part III is hereby incorporated by reference from the Proxy Statement.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The information required by item 12 of Part III is hereby incorporated by reference from the Proxy Statement.
Item 13. Certain Relationships and Related Transactions
The information required by Item 10 of Part III is hereby incorporated by reference from the Proxy Statement.
Item 14. Principal Accounting Fees and Services.
The information required by Item 14 of Part III is hereby incorporated by reference from the Proxy Statement.
PART IV
Item 15. Exhibits and Financial Statement Schedules.
(a)
1.
The Consolidated Financial Statements of Systemax Inc.
Reference
Report of Ernst & Young, LLP, Independent
Registered Public Accounting Firm
36