Walmart 2004 Annual Report Download - page 56

Report of Management
Management of Wal-Mart Stores, Inc. (“Wal-Mart”) 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 internal and disclosure controls, including an extensive internal audit program.
These controls 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 system of internal and disclosure controls provides reasonable assurance
that Wal-Mart’s assets are safeguarded and that the financial information disclosed 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 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. The Company’s Officers and Directors are required to
report material related-party transactions to the Company.
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 in the United States. 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 independent 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
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