Cracker Barrel 2009 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2009 Cracker Barrel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

51
We are responsible for establishing and maintaining
adequate internal control over financial reporting (as
defined in Rules 13a-15(f) and 15d-15(f) promulgated
under the Exchange Act). We maintain a system of
internal controls that is designed to provide reasonable
assurance in a cost-effective manner as to the fair and
reliable preparation and presentation of the consolidated
financial statements, as well as to safeguard assets from
unauthorized use or disposition.
Our control environment is the foundation for our
system of internal control over financial reporting and is
embodied in our Corporate Governance Guidelines, our
Financial Code of Ethics, and our Code of Business
Conduct and Ethics, all of which may be viewed on our
website. They set the tone for our organization and
include factors such as integrity and ethical values. Our
internal control over financial reporting is supported by
formal policies and procedures, which are reviewed,
modified and improved as changes occur in business
condition and operations. Neither our disclosure controls
and procedures nor our internal controls, however, can or
will prevent all errors and all fraud. A control system,
no matter how well conceived 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 benefits
of controls relative to their costs. Because of the inherent
limitations in all control systems, no evaluation of
controls can provide absolute assurance that all control
issues and instances of fraud, if any, within the Company
have been detected.
C R A C K E R B A R R E L O L D C O U N T R Y S TO R E , I N C .
Management’s Report on Internal Control over Financial Reporting
We conducted an evaluation of the effectiveness of
our internal control over financial reporting based on the
framework in
Internal Control-Integrated Framework
issued by the Committee of Sponsoring Organizations of
the Treadway Commission. This evaluation included review
of the documentation of controls, evaluation of the
design effectiveness of controls, testing of the operating
effectiveness of controls and a conclusion on this
evaluation. We have concluded that our internal control
over financial reporting was effective as of July 31, 2009,
based on these criteria.
In addition, Deloitte & Touche LLP, an independent
registered public accounting firm, has issued an
attestation report on our internal control over financial
reporting, which is included herein.
Michael A. Woodhouse
Chairman, President and Chief Executive Officer
Sandra B. Cochran
Executive Vice President and Chief Financial Officer
6948Financials.qxd:Layout 1 10/6/09 3:10 PM Page 51