Best Buy 2007 Annual Report Download - page 68

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PART II
Item 8. Financial Statements and Supplementary Data.
Management’s Report on the Financial Statements
Our management is responsible for the preparation, integrity and objectivity of the accompanying consolidated financial
statements and the related financial information. The financial statements have been prepared in conformity with accounting
principles generally accepted in the United States of America and necessarily include certain amounts that are based on
estimates and informed judgments. Our management also prepared the related financial information included in this Annual
Report on Form 10-K and is responsible for its accuracy and consistency with the financial statements.
The consolidated financial statements have been audited by Deloitte & Touche LLP for the years ended March 3, 2007, and
February 25, 2006, and by Ernst & Young LLP for the year ended February 26, 2005, independent registered public
accounting firms who conducted their audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). The independent registered public accounting firms’ responsibility is to express an opinion as to the
fairness with which such financial statements present our financial position, results of operations and cash flows in
accordance with accounting principles generally accepted in the United States.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as
defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is
designed under the supervision of our principal executive officer and principal financial officer, and effected by our 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 accounting principles generally
accepted in the United States and include those policies and procedures that:
(1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and the
dispositions of our assets;
(2) Provide reasonable assurance that our transactions are recorded as necessary to permit preparation of financial
statements in accordance with accounting principles generally accepted in the United States, and that our receipts and
expenditures are being made only in accordance with authorizations of our management and Board of Directors; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition
of our assets that could have a material effect on our financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial
statement preparation and presentation.
Under the supervision and with the participation of our management, including our principal executive officer and principal
financial officer, we assessed the effectiveness of our internal control over financial reporting as of March 3, 2007, using the
criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control —
Integrated Framework. Based on its assessment, management has concluded that our internal control over financial reporting
was effective as of March 3, 2007. During its assessment, management did not identify any material weaknesses in our internal
control over financial reporting. Management has excluded from its assessment the internal control over financial reporting at
Pacific Sales Kitchen and Bath Centers, which was acquired on March 7, 2006, and whose financial statements reflect total
assets and total revenues constituting 3% and 1%, respectively, of the consolidated financial statement amounts as of and for the
year ended March 3, 2007. Management has also excluded from its assessment the internal control over financial reporting at
Jiangsu Five Star Appliance Co., in which a 75% interest was acquired on June 8, 2006, and whose financial statements reflect
total assets and total revenues constituting 5% and 2%, respectively, of the consolidated financial statement amounts as of and
for the year ended March 3, 2007. Deloitte & Touche LLP, the independent registered public accounting firm that audited our
consolidated financial statements for the year ended March 3, 2007, included in Item 8, Financial Statements and
Supplementary Data, of this Annual Report on Form 10-K, has issued an unqualified attestation report on management’s
assessment of internal control over financial reporting.
Bradbury H. Anderson
Vice Chairman and Chief Executive Officer
(Principal Executive Officer)
Darren R. Jackson
Executive Vice President — Finance
and Chief Financial Officer
(Principal Financial Officer)