Nike 2010 Annual Report Download - page 57

Table of Contents
An Internal Audit department reviews the results of its work with the Audit Committee of the Board of Directors, presently consisting of three outside
directors. The Audit Committee is responsible for the appointment of the independent registered public accounting firm and reviews with the independent
registered public accounting firm, management and the internal audit staff, the scope and the results of the annual examination, the effectiveness of the
accounting control system and other matters relating to the financial affairs of NIKE as they deem appropriate. The independent registered public
accounting firm and the internal auditors have full access to the Committee, with and without the presence of management, to discuss any appropriate
matters.
Management’s Annual 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 Rule
13a−15(f) and Rule 15d−15(f) of the Securities Exchange Act of 1934, as amended. Internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with
generally accepted accounting principles in the United States of America. Internal control over financial reporting includes those policies and procedures
that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the
company; (ii) 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 our
management and directors; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of
assets of the company that could have a material effect on the financial statements.
While “reasonable assurance” is a high level of assurance, it does not mean absolute assurance. Because of its inherent limitations, internal control
over financial reporting may not prevent or detect every misstatement and instance of fraud. Controls are susceptible to manipulation, especially in instances
of fraud caused by the collusion of two or more people, including our senior management. Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
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 (COSO). Based on the results of our evaluation, our management
concluded that our internal control over financial reporting was effective as of May 31, 2010.
PricewaterhouseCoopers LLP, an independent registered public accounting firm, has audited (1) the consolidated financial statements and (2) the
effectiveness of our internal control over financial reporting as of May 31, 2010, as stated in their report herein.
Mark G. Parker Donald W. Blair
Chief Executive Officer and President Chief Financial Officer
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