Walmart 2014 Annual Report Download - page 64

Wal-Mart Stores, Inc.
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 nancial 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 preparing those
Consolidated Financial Statements, management is 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 nancial
information and the audit of our Consolidated Financial Statements. The
Audit Committee stays informed of the nancial condition of Walmart
and regularly reviews management’s nancial policies and procedures,
the independence of our independent auditors, our internal control over
nancial reporting and the objectivity of our nancial 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 rm, to audit our
Consolidated Financial Statements found in this Annual Report to
Shareholders. We have made available to Ernst & Young LLP all of our
nancial records and related data in connection with their audit of our
Consolidated Financial Statements. We have led with the Securities and
Exchange Commission (“SEC”) the required certications related to our
Consolidated Financial Statements as of and for the year ended January 31,
2014. These certications are attached as exhibits to our Annual Report
on Form 10-K for the year ended January 31, 2014. Additionally, we have
also provided to the New York Stock Exchange the required annual
certication of our Chief Executive Ocer regarding 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 nancial reporting. Internal control over
nancial reporting is a process designed to provide reasonable assurance
regarding the reliability of nancial reporting and the preparation of
nancial statements for external reporting purposes in accordance with
accounting principles generally accepted in the United States. Because
of its inherent limitations, internal control over nancial reporting may
not prevent or detect misstatements. Management has assessed the
eectiveness of the Company’s internal control over nancial reporting
as of January 31, 2014. 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 (1992). Management concluded that based on its assessment,
Walmart’s internal control over nancial reporting was eective as of
January 31, 2014. The Company’s internal control over nancial reporting
as of January 31, 2014, 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 eectiveness of these disclosure controls
and procedures as of January 31, 2014, and determined they were eective
as of that date to provide reasonable assurance that information required
to be disclosed by us in the reports we le 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 eective to provide reasonable assurance
that such information is recorded, processed, summarized and reported
within the time periods specied 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 eective 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 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 nancial ocers.
Walmart also has in place a Related-Party Transaction Policy. This policy
applies to Walmart’s senior ocers and directors and requires material
related-party transactions to be reviewed by the Audit Committee. The
senior ocers and directors are required to report material related-party
transactions to Walmart. We maintain a global ethics oce which
oversees and administers an ethics helpline. The ethics helpline provides
a channel for associates to make condential and anonymous complaints
regarding potential violations of our statements of ethics, including
violations related to nancial or accounting matters.
C. Douglas McMillon
President and Chief Executive Ocer
Charles M. Holley, Jr.
Executive Vice President and Chief Financial Ocer
62 Walmart 2014 Annual Report
Management’s Report to Our Shareholders