AAP » Topics » MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
This excerpt taken from the AAP 10-K filed Mar 17, 2005.
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management of Advance Auto Parts,
Inc. and its subsidiaries (the Company) is responsible for establishing and maintaining
adequate internal control over financial reporting. The Companys internal control
over financial reporting is a process designed under the supervision of the Companys
principal executive officer and principal financial officer to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of the
Companys financial statements for external purposes in accordance with accounting
principles generally accepted in the United States of America.
Our internal control over financial
reporting includes policies and procedures that (1) pertain to the maintenance of records
that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of the Company are being made only in accordance with authorizations of
management and directors of the Company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the
Companys assets that could have a material effect on the financial statements.
As of January 1, 2005, management
assessed the effectiveness of the Companys internal control over financial reporting
based on the criteria established in Internal Control Integrated Framework
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Based on this assessment, management has determined that the Companys internal
control over financial reporting as of January 1, 2005 is effective. Because of the
inherent limitations of internal control over financial reporting, including the
possibility of collusion or improper management override of controls, material
misstatements due to error or fraud may not be prevented or detected on a timely basis.
Also, projections of any evaluation of the effectiveness of the internal control over
financial reporting to future periods are subject to the risk that the controls may become
inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Deloitte & Touche LLP, the
Companys independent registered public accounting firm who audited the
Companys consolidated financial statements, has issued a report on managements
assessment of the Companys internal control over financial reporting as of January
1, 2005 and is included on page F-3 herein.
"MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING" elsewhere: