Big Lots 2007 Annual Report Download - page 165

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ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has
evaluated the effectiveness of our disclosure controls and procedures, as that term is defined in Rules 13a-15(e)
and 15d-15(e) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), as of the end of the period
covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have
each concluded that such disclosure controls and procedures were effective as of the end of the period covered
by this report.
Management’s Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting
for us as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial
reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements in accordance with accounting principles generally accepted in the United
States of America.
Internal control systems, no matter how well designed and operated, have inherent limitations, including the
possibility of the circumvention or overriding of controls. Due to these inherent limitations, our internal control
over financial reporting may not prevent or detect misstatements. As a result, projections of effectiveness to
future periods are subject to risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of our internal control system as of February 2, 2008. In making its
assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission in Internal Control ― Integrated Framework. Based on this assessment, management,
including the Chief Executive Officer and Chief Financial Officer, concluded that we maintained effective
internal control over financial reporting as of February 2, 2008.
Our independent registered public accounting firm, Deloitte & Touche LLP, has issued an attestation report on
our internal control over financial reporting. The report appears in the Financial Statements and Supplementary
Data section of this Form 10-K.
Changes in Internal Control over Financial Reporting
We are in the process of implementing a new point of sale register system in all of our stores. We have
approximately 700 of the 1,353 stores on the new system in 2007 and we expect to complete the roll out to the
remaining stores in 2008. The implementation of the new system required us to modify our internal controls
over financial reporting (as that term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act). There
were no other changes in our internal control over financial reporting that occurred during our most recent
fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over
financial reporting.
ITEM 9B. OTHER INFORMATION
Not applicable.