Lowe's 1997 Annual Report Download - page 19

Management’s Responsibility for Financial Reporting
Lowe’s management is responsible for the preparation, integrity and fair presentation of its published financial statements. These
statements have been prepared in accordance with generally accepted accounting principles and, as such, include amounts based on
management’s best estimates and judgments. Lowe’s management also prepared the other information included in the annual report and
is responsible for its accuracy and consistency with the financial statements.
The Company’s financial statements have been audited by the independent accounting firm, Deloitte & Touche LLP which was given
unrestricted access to all financial records and related data. The Company believes that all representations made to the independent
auditors during their audit were valid and appropriate. Deloitte & Touche’s audit report presented here provides an independent
opinion upon the fairness of the financial statements.
The Company maintains a system of internal control over financial reporting, which is designed to provide reasonable assurance to
Lowe’s management and Board of Directors regarding the preparation of reliable published financial statements. The system includes
appropriate divisions of responsibility, established policies and procedures (including a code of conduct to foster a strong ethical
climate) which are communicated throughout the Company, and the careful selection, training and development of our people.
Internal auditors monitor the operation of the internal control system and report findings and recommendations to management and
the Board of Directors, and corrective actions are taken to address control deficiencies and other opportunities for improving the
system as they are identified. The Board, operating through its audit committee, provides oversight to the financial reporting process.
Robert L. Tillman Thomas E. Whiddon
Chairman of the Board Executive Vice President & Chief Financial Officer
President & Chief Executive Officer
Independent Auditors’ Report
To the Board of Directors and Shareholders
of Lowe’s Companies, Inc.
We have audited the accompanying consolidated balance sheets of Lowe’s Companies, Inc. and subsidiaries as of January 30, 1998
and January 31, 1997, and the related consolidated statements of earnings, shareholders’ equity, and cash flows for each of the three
fiscal years in the period ended January 30, 1998. 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 generally accepted auditing standards. 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, such consolidated financial statements present fairly, in all material respects, the financial position of Lowe’s Compa-
nies, Inc. and subsidiaries at January 30, 1998 and January 31, 1997, and the results of their operations and their cash flows for each of
the three fiscal years in the period ended January 30, 1998 in conformity with generally accepted accounting principles.
Deloitte & Touche LLP
Charlotte, North Carolina
February 19, 1998
Audit Committee Chairman’s Letter
The Audit Committee of the Board of Directors is composed of the following six independent directors: John Belk, Chairman,
Leonard Berry, Leonard Herring, Richard Lochridge, Claudine Malone and Robert Strickland. The committee held five meetings during
Fiscal 1997.
The Audit Committee oversees the Company’s financial reporting process on behalf of the Board of Directors. In fulfilling its
responsibility the committee recommended to the Board of Directors, the engagement of Deloitte & Touche LLP as the Company’s
independent public accountants. The committee discussed with the internal auditors and the independent public accountants the
overall scope and results of their respective audits, their evaluation of the Company’s internal controls, and the overall quality of the
Company’s financial reporting. The committee also reviewed the Company’s consolidated financial statements and the adequacy of the
Company’s internal controls with management. The meetings were designed to facilitate any private communication with the commit-
tee desired by the internal auditors or independent public accountants.
John Belk
Chairman, Audit Committee
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