CompUSA 2007 Annual Report Download - page 14

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9
KL2 2553275.3
REPORT OF THE AUDIT COMMITTEE∗
The Audit Committee of the Board operates under its charter, which was originally adopted by the Board in
2000 and revised in February 2003 and August 2006. Management is responsible for the Company’s internal
accounting and financial controls, the financial reporting process, the internal audit function and compliance with
the Company’s policies and legal requirements. The Company’s independent registered public accountants are
responsible for performing an independent audit of the Company’s consolidated financial statements in accordance
with standards of the Public Company Accounting Oversight Board (United States) and for issuance of a report
thereon; they also perform limited reviews of the Company’s unaudited quarterly financial statements.
The Audit Committee’s responsibility is to engage the independent registered public accountants, monitor and
oversee these accounting, financial and audit processes and report its findings to the full Board. It also investigates
matters related to the Company’s financial statements and controls as it deems appropriate. In the performance of
these oversight functions, the members of the Audit Committee rely upon the information, opinions, reports and
statements presented to them by Company management and by the independent registered public accountants, as
well as by other experts that the Committee hires.
The Committee reviewed and discussed the audited consolidated financial statements of the Company for the
year ended December 31, 2007 with management, who represented that the Company’s consolidated financial
statements for fiscal 2007 were prepared in accordance with U.S. generally accepted accounting principles. It
discussed with Ernst & Young LLP, the Company’s independent registered public accountants for fiscal 2007, those
matters required to be reviewed pursuant to Statement of Accounting Standards No. 61 (“Communication with
Audit Committees”), as amended by Statement of Accounting Standards No. 90 (Audit Committee
Communications). The Committee has received from Ernst & Young LLP written independence disclosures and the
letter required by Independence Standards Board Standard No. 1 (“Independence Discussions with Audit
Committees”) and had a discussion with Ernst & Young LLP regarding their independence.
Based on the review of the representations of management, the discussions with management and the
independent registered public accountants and the review of the Report of Ernst & Young LLP, Independent
Registered Public Accounting Firm, to the Committee, the Audit Committee recommended to the Board that the
financial statements of the Company for the year ended December 31, 2007 as audited by Ernst & Young LLP be
included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission.
AUDIT COMMITTEE
Ann R. Leven (Chair)
Stacy S. Dick
Robert D. Rosenthal
∗ This report shall not be deemed incorporated by reference into any filing under the Securities Act of 1933 or under the
Securities Exchange Act of 1934, except to the extent we specifically incorporate this information by reference.