CompUSA 2015 Annual Report Download - page 39

Table of Contents
Ourexposuretomarketriskforchangesininterestratesrelatesprimarilytoourvariableratedebt.Ourvariableratedebtconsistsofshort-termborrowingsunder
ourcreditfacilities.AsofDecember31,2015,therewerenooutstandingbalancesunderourvariableratecreditfacility.Ahypotheticalchangeinaverageinterest
ratesofonepercentagepointisnotexpectedtohaveamaterialeffectonourfinancialposition,resultsofoperationsorcashflowsoverthenextfiscalyear.
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,
2015.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the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(2013framework).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,2015.
TheCompany’sindependentregisteredpublicaccountingfirm,Ernst&YoungLLP,hasissuedanattestationreportontheeffectivenessoftheCompany’sinternal
controloverfinancialreportingasofDecember31,2015,acopyofwhichisincludedinthisreportonForm10-K.
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