The Supervisory Board has appointed BDO Deutsche Warentreuhand Aktiengesellschaft Wirtschaftsprüfungsgesellschaft to be auditors for the 2007 financial year. The Supervisory Board first ascertained that no business, financial, personal or other relations which could give rise to doubts about the auditor’s impartiality existed between the auditor and his executive bodies and audit managers, on the one hand, and the corporation and the members of its executive bodies, on the other hand. The main points of the audit were fixed with the auditor and it was agreed that any possible grounds for exclusion or partiality would be removed or made known during the audit. To enable early identification of material risks, Arcandor AG has set up a risk management system. A detailed account is given in the consolidated management report. Consolidated accounting is done in accordance with IFRS (International Financial Reporting Standards).