MOVADO GROUP, INC. Report of Management The consolidated financial statements and all related financial information contained herein are the responsibility of the Company. The financial statements, which include amounts based on judgements, have been prepared in accordance with generally accepted accounting principles. Other financial information in the annual report is consistent with that in the financial statements. The Company maintains a system of internal controls that it believes provides reasonable assurance that transactions are executed in accordance with management’s authorization and properly recorded, that assets are safeguarded, and that accountability for assets is maintained. The system of internal controls is characterized by a control-oriented environment within the Company, which includes written policies and procedures,  careful selection and training of personnel, and internal audits. PricewaterhouseCoopers LLP, independent accountants, have audited and reported on the Company’s  consolidated financial statements. Their audits were performed in accordance with generally accepted auditing standards. The Audit Committee of the Board of Directors, composed of four non-management directors, meets  periodically with PricewaterhouseCoopers LLP, internal audit and management representatives to review  internal accounting control, auditing and financial reporting matters. Both PricewaterhouseCoopers LLP and internal audit have unrestricted access to the Audit Committee and may meet with it without management  representatives being present. 58