Einstein Bros 2008 Annual Report Download - page 37

Form 10-K
http://www.sec.gov/Archives/edgar/data/949373/000119312509042707/d10k.htm[9/11/2014 10:10:56 AM]
Table of Contents
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Page
Audited Annual Financial Statements
Report of Independent Registered Public Accounting Firm 47
Consolidated Balance Sheets as of January 1, 2008 and December 30, 2008 49
Consolidated Statements of Operations for the Years Ended January 2, 2007, January 1, 2008 and December 30, 2008 50
Consolidated Statements of Changes in Stockholders’ Deficit for the Years Ended January 2, 2007, January 1, 2008 and December 30,
2008 51
Consolidated Statements of Cash Flows for the Years Ended January 2, 2007, January 1, 2008 and December 30, 2008 52
Notes to Consolidated Financial Statements 53
46
Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Stockholders
Einstein Noah Restaurant Group, Inc.
We have audited the accompanying balance sheets of Einstein Noah Restaurant Group, Inc. (“Einstein Noah”) (a Delaware corporation) as of
December 30, 2008 and January 1, 2008, and the related statements of operations, stockholders’ deficit, and cash flows for each of the three years
in the period ended December 30, 2008. We also have audited Einstein Noah’ s internal control over financial reporting as of December 30, 2008,
based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission (“COSO”). Einstein Noah’ s management is responsible for these financial statements, for maintaining effective internal control over
financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying
Management’ s Annual Report on Internal Control Over Financial Reporting included in Item 9A. Our responsibility is to express an opinion on
these financial statements and an opinion on Einstein Noah’ s internal control over financial reporting based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement
and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements
included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal
control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also
included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis
for our opinions.
A company’ s internal control over financial reporting is a process 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. A
company’ s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles,
and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) 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 financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Einstein Noah as of
December 30, 2008 and January 1, 2008, and the results of its operations and its cash flows for each of the three years in the period ended
December 30, 2008 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, Einstein
Noah maintained, in all material respects, effective internal control over financial reporting as of December 30, 2008, based on criteria established
in Internal Control—Integrated Framework issued by COSO.