Walmart 2002 Annual Report Download - page 42

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Report of Independent Auditors
The Board of Directors and Shareholders,
Wal-Mart Stores, Inc.
We have audited the accompanying consolidated balance sheets of Wal-Mart Stores, Inc. as of January 31, 2002 and 2001, and the related
consolidated statements of income, shareholders’ equity and cash flows for each of the three years in the period ended January 31, 2002.
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. 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, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Wal-Mart
Stores, Inc. at January 31, 2002 and 2001, and the consolidated results of its operations and its cash flows for each of the three years in the
period ended January 31, 2002, in conformity with accounting principles generally accepted in the United States.
Tulsa, Oklahoma
March 22, 2002
Report of Management
Management of Wal-Mart Stores Inc. is responsible for the integrity and objectivity of the financial statements and other information presented
in this report. These financial statements have been prepared in conformity with accounting principles generally accepted in the United States.
The preparation of financial statements requires certain estimates and judgments, which are based upon currently available information and
management’s view of current conditions and circumstances.
Management has developed and maintains a system of accounting and controls, including an extensive internal audit program. These controls
and procedures are designed to provide reasonable assurance that the Company’s assets are protected from improper use and that Wal-Mart’s
accounting records provide a reliable basis for the preparation of financial statements. We continually review, improve and modify these systems
and programs in response to changes in business conditions and operations and the recommendations made by Wal-Mart’s internal and external
auditors. We believe that the accounting and control systems provide reasonable assurance that Wal-Mart’s assets are safeguarded and that the
financial information presented is reliable.
Our Company was founded on the belief that open communications and the highest standard of ethics are necessary to be successful. Our long-
standing “open door” communication policy helps management be aware of and deal with issues in a timely and effective manner. Through the
open door policy all Associates are encouraged to inform management at the appropriate level when they are concerned about any matter
pertaining to the Company.
Wal-Mart has adopted a Statement of Ethics to guide our Associates in the continued observance of high ethical standards such as honesty,
integrity and compliance with the law in the conduct of the Company’s business. Familiarity and compliance with the Statement of Ethics is
periodically reviewed and acknowledged in writing by all management Associates. The Company also has in place a Related Party Transaction
Policy. This policy applies to all Officers and Directors of the Company and requires material related party transactions to be reviewed by the
Audit Committee of the Board of Directors. Annually, the Company’s Officers and Directors report material related party transactions to the
Company and Officers acknowledge their familiarity and compliance with the policy.
We retain Ernst & Young LLP, independent auditors, to audit the company’s financial statements. Their audits are performed in accordance with
generally accepted auditing standards. We have made available to Ernst & Young LLP all financial records and related data.
The Board of Directors, through the activities of its Audit Committee consisting solely of outside directors, provides oversight of the process of
reporting financial information. The Committee stays informed of the financial condition of the Company and regularly reviews its financial
policies and procedures, the independence of the Company’s independent auditors, its internal accounting controls and the objectivity of its
financial reporting. Both the Company’s independent auditors and the internal auditors have free access to the Audit Committee and meet with
the Committee periodically, both with and without management present.
H. Lee Scott Thomas M. Schoewe
President and Chief Executive Officer Executive Vice President and Chief Financial Officer