Petsmart 2004 Annual Report Download - page 54

Remediation Steps to Address Material Weakness
To remediate the material weakness in PETsMART's internal control over Ñnancial reporting, we have
changed our policies and procedures in the Ñrst quarter of Ñscal 2005 to conform to GAAP, and we are
implementing additional review procedures over the selection and monitoring of appropriate assumptions and
factors aÅecting lease accounting practices. No other material weaknesses were identiÑed as a result of our
assessment.
Changes in Internal Control Over Financial Reporting
There have been no changes in our internal control over Ñnancial reporting identiÑed in connection with
the evaluation required by Rule 13a-15(d) of the Securities Exchange Act of 1934, as amended, that occurred
during PETsMART's last Ñscal quarter that have materially aÅected, or are reasonably likely to materially
aÅect, our internal controls over Ñnancial reporting. As noted above, during the Ñrst quarter of Ñscal 2005 we
are implementing certain remediation steps to address the identiÑed material weakness which has materially
aÅected our internal control over Ñnancial reporting.
Independent Registered Public Accountant Firm Report on Internal Control Over Financial Reporting
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Stockholders
PETsMART, Inc.
Phoenix, Arizona
We have audited management's assessment, included in the accompanying Management's Report on
Internal Control Over Financial Reporting, that PETsMART, Inc. and subsidiaries (the ""Company'') did not
maintain eÅective internal control over Ñnancial reporting as of January 30, 2005, because of the eÅect of the
material weakness identiÑed in management's assessment based on criteria established in Internal Control Ì
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
The Company's management is responsible for maintaining eÅective internal control over Ñnancial reporting
and for its assessment of the eÅectiveness of internal control over Ñnancial reporting. Our responsibility is to
express an opinion on management's assessment and an opinion on the eÅectiveness of the Company's internal
control over Ñnancial reporting based on our audit.
We conducted our audit in accordance with the standards 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 eÅective internal control over Ñnancial reporting was maintained in all material
respects. Our audit included obtaining an understanding of internal control over Ñnancial reporting, evaluating
management's assessment, testing and evaluating the design and operating eÅectiveness of internal control,
and performing such other procedures as we considered necessary in the circumstances. We believe that our
audit provides a reasonable basis for our opinions.
A company's internal control over financial reporting is a process designed by, or under the supervision of,
the company's principal executive and principal financial officers, or persons performing similar functions, and
effected by the company's board of directors, management, and other personnel 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.
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