Starbucks 2002 Annual Report Download - page 22

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MANAGEMENT’SRESPONSIBILITY 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 estimates and judgments
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, transactions are properly recorded in the Company’s records, assets are
safeguarded and 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. In addition, the Company’s internal audit department assesses the effectiveness and adequacy
of internal controls on a regular basis and recommends improvements when appropriate. Management considers the internal
auditors’ and independent auditors’ recommendations concerning the Company’s internal controls, and takes steps to implement
those that are believed to be appropriate in the circumstances.
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, the independent auditors and the internal
auditors, jointly and separately, to review financial reporting matters as well as to ensure that each is properly discharging its
responsibilities. The independent auditors and the internal 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.
Orin C. Smith Michael Casey
president and executive vice president,
chief executive officer chief financial officer and
chief administrative officer
INDEPENDENT AUDITORS’REPORT
To the Board of Directors and Shareholders of Starbucks Corporation
Seattle,Washington
We have audited the accompanying consolidated balance sheets of Starbucks Corporation and subsidiaries (the Company) as of
September 29, 2002, and September 30, 2001, and the related consolidated statements of earnings, shareholders’ equity and cash
flows for the years ended September 29, 2002, September 30, 2001, and October 1, 2000. 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 auditing standards generally accepted in the United States of America. 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 the
Company as of September 29, 2002, and September 30, 2001, and the results of its operations and its cash flows for the years
ended September 29, 2002, September 30, 2001, and October 1, 2000, in conformity with accounting principles generally
accepted in the United States of America.
Deloitte & Touche LLP
Seattle,Washington
December 4, 2002