CompUSA 2008 Annual Report Download - page 66

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Item 8. Financial Statements and Supplementary Data.
The information required by Item 8 of Part II is incorporated herein by reference to the Consolidated
Financial Statements filed with this report; see Item 15 of Part IV.
Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A. Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of the Company’ s management, including the
Company’ s Chief Executive Officer and Chief Financial Officer, the Company carried out an evaluation
of the effectiveness of the design and operation of the Company’ s disclosure controls and procedures as
of December 31, 2008. Based upon this evaluation, the Company’ s Chief Executive Officer and Chief
Financial Officer have concluded that the Company’ s disclosure controls and procedures are effective.
Inherent Limitations of Internal Controls over Financial Reporting
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
Company’ s assets; (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
the Company’ s receipts and expenditures are being made only in accordance with authorizations of the
Company’ s management and directors; and (iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the Company’ s assets that could have a
material effect on the Company’ s financial statements.
Management, including the Company’ s Chief Executive Officer and Chief Financial Officer, does not
expect that the Company’ s internal controls will prevent or detect all errors and all fraud. A control
system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance
that the objectives of the control system are met. Further, the design of a control system must reflect the
fact that there are resource constraints, and the benefits of controls must be considered relative to their
costs. Because of the inherent limitations in all control systems, no evaluation of internal controls can
provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Also,
any evaluation of the effectiveness of controls in future periods are subject to the risk that those internal
controls may become inadequate because of changes in business conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Management’s Report on Internal Control Over Financial Reporting
The Company’ s management is responsible for establishing and maintaining adequate internal control
over financial reporting. Under the supervision and with the participation of Company’ s management,
including the Chief Executive Officer and Chief Financial Officer, the Company evaluated the
effectiveness of the design and operation of its internal control over financial reporting based on the
framework established in Internal Control - Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission. Based on that evaluation, the Company’ s Chief
Executive Officer and Chief Financial Officer concluded that the Company’ s internal control over
financial reporting was effective as of December 31, 2008.