Starbucks 2006 Annual Report Download - page 76

Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
Not applicable.
Item 9A. Controls and Procedures
DISCLOSURE CONTROLS AND PROCEDURES
The Company maintains disclosure controls and procedures that are designed to ensure that material information
required to be disclosed in the Company’s periodic reports filed or submitted under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in
the SEC’s rules and forms.
During the quarter the Company carried out an evaluation, under the supervision and with the participation of the
Company’s management, including the chief executive officer and the chief financial officer, of the effectiveness of the
design and operation of the disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the
Exchange Act. Based upon that evaluation, the Company’s chief executive officer and chief financial officer concluded
that the Company’s disclosure controls and procedures were effective, as of the end of the period covered by this report
(October 1, 2006).
During the quarter ended October 1, 2006, there were no changes in the Company’s internal control over financial
reporting (as defined in Rules 13a-15(f) and 15d-15(f ) of the Exchange Act) that materially affected or are reasonably
likely to materially affect internal control over financial reporting.
The certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 are filed as exhibits 31.1 and 31.2,
respectively, to this Annual Report on Form 10-K.
REPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
The management of Starbucks is responsible for establishing and maintaining adequate internal control over financial
reporting. Internal control over financial reporting is a process to provide reasonable assurance regarding the reliability of
our financial reporting for external purposes in accordance with accounting principles generally accepted in the United
States of America. Internal control over financial reporting includes maintaining records that in reasonable detail
accurately and fairly reflect our transactions; providing reasonable assurance that transactions are recorded as necessary for
preparation of our financial statements; providing reasonable assurance that receipts and expenditures are made in
accordance with management authorization; and providing reasonable assurance that unauthorized acquisition, use or
disposition of company assets that could have a material effect on our financial statements would be prevented or detected
on a timely basis. Because of its inherent limitations, internal control over financial reporting is not intended to provide
absolute assurance that a misstatement of our financial statements would be prevented or detected.
Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the
framework and criteria established in Internal Control — Integrated Framework, issued by the Committee of Sponsoring
Organizations of the Treadway Commission. This evaluation included review of the documentation of controls,
evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this
evaluation. Based on this evaluation, management concluded that the Company’s internal control over financial
reporting was effective as of October 1, 2006. Management’s assessment of the effectiveness of our internal control over
financial reporting as of October 1, 2006 has been audited by Deloitte & Touche LLP, an independent registered public
accounting firm, as stated in their report which is included in Item 8 of this Report.
Item 9B. Other Information
None.
72 STARBUCKS CORPORATION, FORM 10-K