Walmart 2010 Annual Report Download - page 56

Management of Wal-Mart Stores, Inc. (“Walmart”, the “company”
or “we”) is responsible for the preparation, integrity and objectivity
of Walmart’s Consolidated Financial Statements and other financial
information contained in this Annual Report to Shareholders. Those
Consolidated Financial Statements were prepared in conformity with
accounting principles generally accepted in the United States. In prepar-
ing those Consolidated Financial Statements, management was required
to make certain estimates and judgments, which are based upon currently
available information and management’s view of current conditions
and circumstances.
The Audit Committee of the Board of Directors, which consists solely
of independent directors, oversees our process of reporting financial
information and the audit of our Consolidated Financial Statements.
The Audit Committee stays informed of the financial condition of
Walmart and regularly reviews management’s financial policies and
procedures, the independence of our independent auditors, our internal
control over financial reporting and the objectivity of our financial
reporting. Both the independent auditors and the internal auditors have
free access to the Audit Committee and meet with the Audit Committee
periodically, both with and without management present.
Acting through our Audit Committee, we have retained Ernst & Young
LLP, an independent registered public accounting firm, to audit our
Consolidated Financial Statements found in this Annual Report to
Shareholders. We have made available to Ernst & Young LLP all of our
financial records and related data in connection with their audit of our
Consolidated Financial Statements. We have filed with the Securities
and Exchange Commission (“SEC”) the required certifications related
to our Consolidated Financial Statements as of and for the year ended
January 31, 2010. These certifications are attached as exhibits to our
Annual Report on Form 10-K for the year ended January 31, 2010.
Additionally, we have also provided to the New York Stock Exchange
the required annual certification of our Chief Executive Officer regard-
ing our compliance with the New York Stock Exchange’s corporate
governance listing standards.
Report on Internal Control Over Financial Reporting
Management has responsibility for establishing and maintaining adequate
internal control over financial reporting. Internal control over financial
reporting is a process designed to provide reasonable assurance regard-
ing the reliability of financial reporting and the preparation of financial
statements for external reporting purposes in accordance with accounting
principles generally accepted in the United States. Because of its inherent
limitations, internal control over financial reporting may not prevent
or detect misstatements. Management has assessed the effectiveness of
the company’s internal control over financial reporting as of January 31,
2010. In making its assessment, management has utilized the criteria set
forth by the Committee of Sponsoring Organizations (“COSO”) of
the Treadway Commission in Internal Control – Integrated Framework.
Management concluded that based on its assessment, Walmart’s internal
control over financial reporting was effective as of January 31, 2010. The
company’s internal control over financial reporting as of January 31,
2010, has been audited by Ernst & Young LLP as stated in their report
which appears in this Annual Report to Shareholders.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures designed to provide
reasonable assurance that information required to be timely disclosed
is accumulated and communicated to management in a timely fashion.
Management has assessed the effectiveness of these disclosure controls and
procedures as of January 31, 2010, and determined they were effective as
of that date to provide reasonable assurance that information required to
be disclosed by us in the reports we file or submit under the Securities
Exchange Act of 1934, as amended, was accumulated and communicated
to management, as appropriate, to allow timely decisions regarding
required disclosure and were effective to provide reasonable assurance
that such information is recorded, processed, summarized and reported
within the time periods specified by the SEC’s rules and forms.
Report on Ethical Standards
Our company was founded on the belief that open communications
and the highest standards of ethics are necessary to be successful. Our
long-standing “Open Door” communication policy helps management
be aware of and address issues in a timely and effective manner. Through
the Open Door policy all associates are encouraged to inform manage-
ment at the appropriate level when they are concerned about any matter
pertaining to Walmart.
Walmart 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 Walmart’s
business. Familiarity and compliance with the Statement of Ethics is
required of all associates who are part of management. The company
also maintains a separate Code of Ethics for our senior financial officers.
Walmart also has in place a Related-Party Transaction Policy. This policy
applies to Walmart’s senior officers and directors and requires material
related-party transactions to be reviewed by the Audit Committee. The
senior officers and directors are required to report material related-party
transactions to Walmart. We maintain a global ethics office which over-
sees and administers an ethics helpline. The ethics helpline provides a
channel for associates to make confidential and anonymous complaints
regarding potential violations of our statements of ethics, including
violations related to financial or accounting matters.
Michael T. Duke
President and Chief Executive Officer
Thomas M. Schoewe
Executive Vice President and Chief Financial Officer
Management’s Report to Our Shareholders
54 Walmart 2010 Annual Report