| Management of EarthWear Clothiers, Inc. (the “Company”)
is responsible for the preparation, consistency, integrity,
and fair presentation of the consolidated financial statements.
The consolidated financial statements have been prepared in
accordance with accounting principles generally accepted in
the United States of America applied on a consistent basis
and, in management’s opinion, are fairly presented. The
financial statements include amounts that are based on management’s
informed judgments and best estimates. |
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| Management has established and maintains comprehensive
systems of internal control that provide reasonable assurance
as to the consistency, integrity, and reliability of the preparation
and presentation of financial statements; the safeguarding
of assets; the effectiveness and efficiency of operations;
and compliance with applicable laws and regulations. The concept
of reasonable assurance is based upon the recognition that
the cost of the controls should not exceed the benefit derived.
Management monitors the systems of internal control and maintains
an independent internal auditing program that assesses the
effectiveness of internal control. Management assessed the
Company’s internal control over financial reporting for
financial presentations in conformity with accounting principles
generally accepted in the United States of America. This assessment
was based on criteria for effective internal control over financial
reporting established in Internal Control — Integrated
Framework issued by the Committee of Sponsoring Organizations
of the Treadway Commission (the COSO Report). Based on this
assessment, management believes that the Company maintained
effective internal control over financial reporting for financial
presentations in conformity with accounting principles generally
accepted in the United States of America as of December 31,
2006. |
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| The Board of Directors exercises its oversight
role with respect to the Company’s systems of internal
control primarily through its Audit Committee, which is comprised
solely of outside directors. The Committee oversees the Company’s
systems of internal control and financial reporting to assess
whether their quality, integrity, and objectivity are sufficient
to protect shareholders’ investments. |
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| The Company’s consolidated financial statements
have been audited by Willis & Adams LLP (“Willis & Adams”),
independent auditors. As part of its audit, Willis & Adams
considers the Company’s internal control to plan the
audit and determine the nature, timing, and extent of auditing
procedures considered necessary to render its opinion as to
the fair presentation, in all material respects, of the consolidated
financial statements, which is based on independent audits
made accordance with the standards of the Public Company Accounting
Oversight Board (United States). Management’s assertion
that the Company maintained effective internal control over
financial reporting for financial presentations in conformity
with accounting principles generally accepted in the United
States of America has been audited by Willis & Adams. Management
has made available to Willis & Adams all the Company’s
financial records and related data, and information concerning
the Company’s internal control over financial reporting,
and believes that all representations made to Willis & Adams
during its audits were valid and appropriate. |
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Calvin C. Rogers
President and
Chief Executive Officer |
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James C. Watts
Senior Vice President
and
Chief Financial Officer
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