Best Buy 2005 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2005 Best Buy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 118

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

30APR200413020799
30APR200414012312
Item 8. Financial Statements and Supplementary Data.
Management’s Report on the Financial Statements
Our management is responsible for the preparation, integrity and objectivity of the accompanying consolidated financial
statements and the related financial information. The financial statements have been prepared in conformity with
accounting principles generally accepted in the United States of America and necessarily include certain amounts that are
based on estimates and informed judgments. Our management also prepared the related financial information included
in this Annual Report on Form 10-K and is responsible for its accuracy and consistency with the financial statements.
The consolidated financial statements have been audited by Ernst & Young LLP, an independent registered public
accounting firm, who conducted their audit in accordance with the standards of the Public Company Accounting
Oversight Board (United States). The independent registered public accounting firm’s responsibility is to express an
opinion as to the fairness with which such financial statements present our financial position, results of operations and
cash flows in accordance with accounting principles generally accepted in the United States.
Management’s Annual Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting as
defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is
designed under the supervision of our principal executive officer and principal financial and accounting officer, and
effected by our Board of Directors, management and other personnel, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles and include those policies and procedures that:
(1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and the
dispositions of our assets;
(2) Provide reasonable assurance that our transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are
being made only in accordance with authorizations of our management and Board of Directors; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
disposition of our assets that could have a material effect on our financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial
statement preparation and presentation.
Under the supervision and with the participation of our management, including our principal executive officer and
principal financial and accounting officer, we assessed the effectiveness of our internal control over financial reporting as
of February 26, 2005, using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in Internal Control — Integrated Framework. Based on its assessment, management has concluded
that our internal control over financial reporting was effective as of February 26, 2005. During its assessment,
management did not identify any material weaknesses in our internal control over financial reporting. Ernst & Young LLP,
the independent registered accounting firm that audited our consolidated financial statements included in Item 8,
Financial Statements and Supplementary Data, of this Annual Report on Form 10-K, has issued an unqualified attestation
report on management’s assessment of internal control over financial reporting.
Bradbury H. Anderson Darren R. Jackson
Vice Chairman and Chief Executive Officer Executive Vice President — Finance
(Principal Executive Officer) and Chief Financial Officer
(Principal Financial and Accounting Officer)
55