Cracker Barrel 2006 Annual Report Download - page 48

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46
TO THE BOARD OF DIRECTORS AND SHAREHOLDERS
OF CBRL GROUP, INC.:
We have audited the accompanying consolidated
balance sheets of CBRL Group, Inc. and subsidiaries
(the “Company”) as of July 28, 2006 and July 29,
2005, and the related consolidated statements of
income, changes in shareholders’ equity, and cash
flows for each of the three fiscal years in the period
ended July 28, 2006. These consolidated financial
statements are the responsibility of the Company’s
management. Our responsibility is to express an
opinion on these consolidated financial statements
based on our audits.
We conducted our audits in accordance with stan-
dards of the Public Company Accounting Oversight
Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable
assurance about whether the financial statements are
free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements.
An audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall
financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such consolidated financial state-
ments present fairly, in all material respects, the
financial position of CBRL Group, Inc. and subsidiaries
as of July 28, 2006 and July 29, 2005, and the results
of their operations and their cash flows for each of
the three fiscal years in the period ended July 28,
2006, in conformity with accounting principles gener-
ally accepted in the United States of America.
As discussed in Note 8 to the consolidated finan-
cial statements, the Company adopted the fair
value recognition provisions of Statement of Financial
Accounting Standards No. 123 (Revised 2004),
Share Based Payment effective July 30, 2005, which
resulted in the Company changing the method
in which it accounts for share-based compensation.
We have also audited, in accordance with the
standards of the Public Company Accounting Oversight
Board (United States), the effectiveness of the
Company’s internal control over financial reporting as
of July 28, 2006, based on the criteria established
in Internal Control—Integrated Framework issued by
the Committee of Sponsoring Organizations of the
Treadway Commission and our report dated October 3,
2006 expressed an unqualified opinion on manage-
ment’s assessment of the effectiveness of the
Company’s internal control over financial reporting and
an unqualified opinion on the effectiveness of the
Company’s internal control over financial reporting.
Nashville, Tennessee
October 3, 2006
Report of Independent Registered Public Accounting Firm