Staples 2004 Annual Report Download - page 93

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Report of Independent Registered Public Accounting Firm
Board of Directors and Shareholders
Staples, Inc.
We have audited the accompanying consolidated balance sheets of Staples, Inc. and subsidiaries as of January 29,
2005 and January 31, 2004 and the related consolidated statements of income, stockholders’ equity, and cash flows for
each of the three years in the period ended January 29, 2005. These financial statements are the responsibility of the
Company’s management. Our responsibility is to express an opinion on these financial statements 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 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, the financial statements referred to above present fairly, in all material respects, the consolidated
financial position of Staples, Inc. and subsidiaries at January 29, 2005 and January 31, 2004, and the consolidated results
of their operations and their cash flows for each of the three years in the period ended January 29, 2005, in conformity
with U.S. generally accepted accounting principles.
As discussed in Note B to the consolidated financial statements, in fiscal year 2003, the Company changed its
method of accounting for cash consideration received from vendors to conform with Emerging Issues Task Force Issue
No. 02-16, ‘‘Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor.’’ As
also discussed in Note B to the consolidated financial statements, in fiscal year 2004, the Company changed its method of
accounting for consideration received by a reseller from a vendor that is a reimbursement by the vendor for honoring the
vendor’s sales incentives offered directly to consumers (e.g. coupons) to conform with Emerging Issues Task Force Issue
No 03-10 ‘‘Application of Issue No. 02-16 by Resellers to Sales Incentives Offered to Consumers by Manufacturers.’’
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States), the effectiveness of Staples, Inc.’s internal control over financial reporting as of January 29, 2005, based
on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission, and our report dated February 22, 2005 expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP
Ernst & Young LLP
Boston, Massachusetts
February 22, 2005
C-2