Harris Teeter 2007 Annual Report Download - page 61

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57
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
None
Item 9A. Controls and Procedures
(a) Evaluation of disclosure controls and procedures. As of September 30, 2007, an evaluation of the
effectiveness of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e)
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) was performed
under the supervision and with the participation of the Company’s management, including the Chief Executive
Officer and Chief Financial Officer. Based on that evaluation, the Company’s Chief Executive Officer and
Chief Financial Officer have concluded that the Company’s disclosure controls and procedures are effective
to ensure that information required to be disclosed by the Company in its reports that it files or submits under
the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the
Securities Exchange Commission rules and forms.
(b) Management’s annual report on internal control over financial reporting. Management of the
Company is responsible for establishing and maintaining adequate internal control over financial reporting
(as defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Exchange Act). The 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. 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 assets of the Company; (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 receipts and expenditures of the Company are being
made only in accordance with authorizations of management and directors of the Company; 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 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.
Management assessed the effectiveness of the Company’s internal control over financial reporting as
of September 30, 2007, based on the framework set forth by the Committee of Sponsoring Organizations of
the Treadway Commission (COSO) in Internal Control-Integrated Framework. Based on that assessment,
management concluded that, as of September 30, 2007, the Company’s internal control over financial reporting
is effective based on the criteria established in Internal Control-Integrated Framework.
(c) Attestation report of the registered public accounting firm. Management’s assessment of the
effectiveness of the Company’s internal control over financial reporting as of September 30, 2007 has been
audited by KPMG, LLP, an independent registered public accounting firm. Their report, which appears in Item 8,
Financial Statement and Supplementary Data included herein, expresses unqualified opinions on management’s
assessment and on the effectiveness of the Company’s internal control over financial reporting as of September
30, 2007.
(d) Changes in internal control over financial reporting. During the Company’s fourth fiscal quarter of
2007, there has been no change in the Company’s internal controls over financial reporting that has materially
affected, or is reasonably likely to materially affect, the Company’s internal controls over financial reporting.
Item 9B. Other Information
None