Starbucks 2001 Annual Report Download - page 33

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Fiscal 2001 Annual Report 49
Management’s Responsibility for Financial Reporting
The management of Starbucks Corporation is responsible for the preparation and integrity of the
financial statements included in this Annual Report to Shareholders. The financial statements have
been prepared in conformity with accounting principles generally accepted in the United States of
America and include amounts based on management’s best judgment where necessary. Financial
information included elsewhere in this Annual Report is consistent with these financial statements.
Management maintains a system of internal controls and procedures designed to provide reasonable
assurance that transactions are executed in accordance with proper authorization, that transactions are
properly recorded in the Company’s records, that assets are safeguarded and that accountability for
assets is maintained.The concept of reasonable assurance is based on the recognition that the cost of
maintaining our system of internal accounting controls should not exceed benefits expected to be
derived from the system. Internal controls and procedures are periodically reviewed and revised, when
appropriate, due to changing circumstances and requirements.
Independent auditors are appointed by the Company’s Board of Directors and ratified by the
Company’s shareholders to audit the financial statements in accordance with auditing standards
generally accepted in the United States of America and to independently assess the fair presentation
of the Company’s financial position, results of operations and cash flows.Their report appears in this
Annual Report.
The Audit Committee, all of whose members are outside directors, is responsible for monitoring the
Company’s accounting and reporting practices. The Audit Committee meets periodically with
management and the independent auditors to ensure that each is properly discharging its
responsibilities. The independent auditors have full and free access to the Committee without the
presence of management to discuss the results of their audits, the adequacy of internal accounting
controls and the quality of financial reporting.
RI N .M I T H I C H A EL ASEY
president and executive vice president,
chief executive officer chief financial officer and
chief administrative officer