●  COSTCO WHOLESALE CORP /NEW · FY 2023 

Controls & Procedures

The architecture of corporate financial reliability hinges on robust internal controls. A recent assessment confirmed that the company’s Disclosure Controls and Procedures, along with its Internal Control over Financial Reporting, were effective as of September 3, 2023. Crucially, the review found no material weaknesses or significant deficiencies in the systems designed to ensure the accuracy of financial reporting.

COST L1 Synthesis
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Costco Wholesale Corp /new Controls & Procedures Synthesis

Internal Controls and Procedures Assessment Report

Overall Assessment

The company reports a strong control environment, concluding that both its Disclosure Controls and Procedures (DCP) and Internal Control over Financial Reporting (ICFR) were effective as of September 3, 2023. The assessment indicates no material weaknesses or significant deficiencies were identified during the reporting period, and there were no changes to ICFR that materially affected its effectiveness.

Disclosure Controls and Procedures (DCP)

Management's Conclusion on Effectiveness

Management concluded that the disclosure controls and procedures were effective as of September 3, 2023. This conclusion was reached after the Chief Executive Officer and the Chief Financial Officer reviewed the controls, ensuring that required information is recorded, processed, summarized, and communicated to management for timely disclosure decisions.

Internal Control Over Financial Reporting (ICFR)

ICFR Design and Scope

The company's ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting in accordance with U.S. GAAP. The scope includes policies and procedures pertaining to:

  • Maintaining accurate records of transactions and asset dispositions.
  • Ensuring transactions are recorded properly and that receipts/expenditures follow appropriate authorizations.
  • Preventing or detecting unauthorized acquisition, use, or disposition of assets that could materially affect financial statements.
Management's Conclusion on Effectiveness

Management concluded that the internal control over financial reporting was effective as of September 3, 2023. This assessment utilized the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in 2013. The effectiveness was also attested to by KPMG LLP, the independent registered public accounting firm.

Identified Weaknesses and Changes

Material Weaknesses or Significant Deficiencies

The provided text does not identify any material weaknesses or significant deficiencies in the company's internal controls over financial reporting.

Changes and Remediation Efforts
  • Changes to Internal Controls: There were no changes in the company's internal control over financial reporting during the fourth quarter of 2023 that were deemed likely to materially affect its effectiveness.
  • Remediation Efforts: Since no weaknesses or material changes were identified, no specific remediation efforts are detailed in this section.

Noteworthy Controls and Procedures

No new controls or procedures were introduced during the reporting period that were specifically highlighted as noteworthy in this filing. The existing controls remain stable and effective, according to management's assessment.