Wal-Mart Stores, Inc. and Subsidiaries - Page 12

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          taken.  Completion of the package by the store was designed to              
          ensure accuracy and consistency in the count and reconciliation             
          with book inventory.  The package included detailed instructions            
          for store preparation to ensure an efficient count.  The package            
          included 13 schedules that were reviewed or completed prior to              
          the day of the count.                                                       
                Persons involved in a count included a team of independent            
          counters (18 to 40 individuals) and representatives from                    
          Wal-Mart's loss prevention department (one to two individuals),             
          internal audit department (one to three individuals), and                   
          operations division (one to two individuals).  E&Y was also                 
          present at the inventories of randomly selected stores to test              
          the count's accuracy by recounting results.  All salable                    
          merchandise in a store was counted by the independent counters on           
          the day of the physical inventory, and they based the count on              
          the inventory's retail value.                                               
                Wal-Mart took inventory while the stores were open to                 
          customers.  Each store count took a full day, commencing at                 
          approximately 8 a.m. and concluding at approximately 6 p.m.                 
          Thereafter, while still at the store, the physical count team               
          reconciled the physical count to the book inventory.  These                 
          reconciliations were reviewed by petitioners' internal audit                
          department on a future date.  Due to the time necessary to review           
          the reconciliations, petitioners did not book the results of a              
          physical inventory until the next month.                                    




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Last modified: May 25, 2011