Walmart 2006 Annual Report Download - page 51

49
Report of Independent Registered Public Accounting Firm on
Internal Control Over Financial Reporting
WAL-MART
The Board of Directors and Shareholders,
Wal-Mart Stores, Inc.
We have audited management’s assessment, included in the
accompanying Management’s Report to Our Shareholders
under the caption “Report on Internal Control Over Financial
Reporting,” that Wal-Mart Stores, Inc. maintained effective inter-
nal control over fi nancial reporting as of January 31, 2006, based
on criteria established in Internal Control – Integrated Framework
issued by the Committee of Sponsoring Organizations of the
Treadway Commission (the COSO criteria). Wal-Mart Stores, Inc.’s
management is responsible for maintaining effective internal con-
trol over fi nancial reporting and for its assessment of the effective-
ness of internal control over fi nancial reporting. Our responsibility
is to express an opinion on management’s assessment and an
opinion on the effectiveness of the company’s internal control
over fi nancial reporting based on our audit.
We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal con-
trol over fi nancial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control
over fi nancial reporting, evaluating management’s assessment, test-
ing and evaluating the design and operating effectiveness of inter-
nal control, and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides
a reasonable basis for our opinion.
A company’s internal control over fi nancial reporting is a process
designed to provide reasonable assurance regarding the reliability
of fi nancial reporting and the preparation of fi nancial statements
for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over fi nancial
reporting includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately
and fairly refl ect the transactions and dispositions of the assets of
the company; (2) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of fi nancial statements
in accordance with generally accepted accounting principles, and
that receipts and expenditures of the company are being made only
in accordance with authorizations of management and directors
of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use,
or disposition of the company’s assets that could have a material
effect on the fi nancial statements.
Because of its inherent limitations, internal control over fi nancial
reporting may not prevent or detect misstatements. Also, projec-
tions of any evaluation of effectiveness to future periods are sub-
ject to the risk that controls may become inadequate because of
changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
As indicated in the accompanying Management’s Report to Our
Shareholders, management’s assessment of and conclusion on
the effectiveness of internal control over fi nancial reporting did
not include the internal controls of The Seiyu, Ltd., and Sonae
Distribuição Brasil S.A., both of which were acquired in fi scal 2006
and are included in the fi scal 2006 consolidated fi nancial state-
ments of Wal-Mart Stores, Inc. These entities represented, in the
aggregate, 5.8% and 0.1% of total assets and total net sales, respec-
tively, of the Company as of, and for the year ended, January 31,
2006. These acquisitions are more fully discussed in Note 6 to the
consolidated fi nancial statements for fi scal 2006. Our audit of inter-
nal control over fi nancial reporting of Wal-Mart Stores, Inc. also
did not include an evaluation of the internal control over fi nancial
reporting for these fi scal 2006 acquisitions.
In our opinion, management’s assessment that Wal-Mart Stores, Inc.
maintained effective internal control over fi nancial reporting as of
January 31, 2006, is fairly stated, in all material respects, based on
the COSO criteria. Also, in our opinion, Wal-Mart Stores, Inc., main-
tained, in all material respects, effective internal control over fi nan-
cial reporting as of January 31, 2006, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the con-
solidated balance sheets of Wal-Mart Stores, Inc. as of January 31,
2006 and 2005, and the related consolidated statements of income,
shareholders’ equity and cash fl ows for each of the three years in
the period ended January 31, 2006 and our report dated March 27,
2006 expressed an unqualifi ed opinion thereon.
.
Rogers, Arkansas
March 27, 2006