Nike 2006 Annual Report Download - page 44

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Management’s Report on Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in Exchange Act rule 13a-15(f). Under the supervision and with the
participation of our Chief Executive Officer and Chief Financial Officer, our management conducted an
evaluation of the effectiveness of our internal control over financial reporting based upon the framework in
Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on that evaluation, our management concluded that our internal control over
financial reporting is effective as of May 31, 2006.
Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting
objectives because of its inherent limitations. Internal control over financial reporting is a process that involves
human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human
failures. Internal control over financial reporting also can be circumvented by collusion or improper management
override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected
on a timely basis by internal control over financial reporting. However, these inherent limitations are known
features of the financial reporting process. Therefore, it is possible to design into the process safeguards to
reduce, though not eliminate, this risk.
PricewaterhouseCoopers LLP, an independent registered public accounting firm, has audited (1) the
consolidated financial statements, (2) management’s assessment of the effectiveness of our internal control over
financial reporting as of May 31, 2006 and (3) the effectiveness of our internal control over financial reporting as
of May 31, 2006, as stated in their report herein.
Mark G. Parker Donald W. Blair
Chief Executive Officer and President Chief Financial Officer
43