Advance Auto Parts 2004 Annual Report Download - page 54

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52
To฀the฀Board฀of฀Directors฀and฀Stockholders฀of
Advance฀Auto฀Parts,฀Inc.฀and฀Subsidiaries
Roanoke,฀Virginia
฀ We฀have฀audited฀management’s฀assessment,฀included฀in฀the฀accompanying฀Management’s฀Report฀on฀Internal฀Control฀
Over฀ Financial฀ Reporting,฀ that฀ Advance฀ Auto฀ Parts,฀ Inc.฀ and฀ subsidiaries฀ (the฀ Company)฀ maintained฀ effective฀ internal฀
control฀ over฀ financial฀ reporting฀ as฀ of฀ January฀ 1,฀ 2005,฀ based฀ on฀ criteria฀ established฀ in฀ Internal฀ Control—Integrated฀
Framework฀issued฀by฀the฀Committee฀of฀Sponsoring฀Organizations฀of฀the฀Treadway฀Commission.฀The฀Company’s฀manage-
ment฀is฀responsible฀for฀maintaining฀effective฀internal฀control฀over฀financial฀reporting฀and฀for฀its฀assessment฀of฀the฀effec-
tiveness฀of฀internal฀control฀over฀financial฀reporting.฀Our฀responsibility฀is฀to฀express฀an฀opinion฀on฀management’s฀assessment฀
and฀an฀opinion฀on฀the฀effectiveness฀of฀the฀Company’s฀internal฀control฀over฀financial฀reporting฀based฀on฀our฀audit.
฀ We฀conducted฀our฀audit฀in฀accordance฀with฀the฀standards฀of฀the฀Public฀Company฀Accounting฀Oversight฀Board฀(United฀
States).฀Those฀standards฀require฀that฀we฀plan฀and฀perform฀the฀audit฀to฀obtain฀reasonable฀assurance฀about฀whether฀effective฀
internal฀ control฀ over฀ financial฀ reporting฀ was฀ maintained฀ in฀ all฀ material฀ respects.฀ Our฀ audit฀ included฀ obtaining฀ an฀฀
understanding฀of฀internal฀control฀over฀financial฀reporting,฀evaluating฀management’s฀assessment,฀testing฀and฀evaluating฀the฀
design฀and฀operating฀effectiveness฀of฀internal฀control,฀and฀performing฀such฀other฀procedures฀as฀we฀considered฀necessary฀
in฀the฀circumstances.฀We฀believe฀that฀our฀audit฀provides฀a฀reasonable฀basis฀for฀our฀opinions.
฀ A฀company’s฀internal฀control฀over฀financial฀reporting฀is฀a฀process฀designed฀by,฀or฀under฀the฀supervision฀of,฀the฀com-
pany’s฀principal฀executive฀and฀principal฀financial฀officers,฀or฀persons฀performing฀similar฀functions,฀and฀effected฀by฀the฀
company’s฀board฀of฀directors,฀management,฀and฀other฀personnel฀to฀provide฀reasonable฀assurance฀regarding฀the฀reliability฀
of฀ financial฀ reporting฀ and฀ the฀ preparation฀ of฀ financial฀ statements฀ for฀ external฀ purposes฀ in฀ accordance฀ with฀ generally฀
accepted฀accounting฀principles.฀A฀company’s฀internal฀control฀over฀financial฀reporting฀includes฀those฀policies฀and฀proce-
dures฀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฀company’s฀assets฀that฀could฀have฀a฀material฀effect฀on฀the฀financial฀statements.
฀ 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.
฀ In฀our฀opinion,฀management’s฀assessment฀that฀the฀Company฀maintained฀effective฀internal฀control฀over฀financial฀report-
ing฀as฀of฀January฀1,฀2005,฀is฀fairly฀stated,฀in฀all฀material฀respects,฀based฀on฀the฀criteria฀established฀in฀Internal฀Control—
Integrated฀ Framework฀ issued฀ by฀ the฀ Committee฀ of฀ Sponsoring฀ Organizations฀ of฀ the฀ Treadway฀ Commission.฀ Also฀ in฀฀
our฀ opinion,฀the฀ Company฀maintained,฀in฀ all฀ material฀ respects,฀ effective฀internal฀control฀over฀ financial฀ reporting฀as฀ of฀
January฀1,฀2005,฀based฀on฀the฀criteria฀established฀in฀Internal฀Control—Integrated฀Framework฀issued฀by฀the฀Committee฀฀
of฀Sponsoring฀Organizations฀of฀the฀Treadway฀Commission.
฀ We฀have฀also฀audited,฀in฀accordance฀with฀the฀standards฀of฀the฀Public฀Company฀Accounting฀Oversight฀Board฀(United฀
States),฀the฀consolidated฀balance฀sheets฀of฀Advance฀Auto฀Parts,฀Inc.฀and฀subsidiaries฀as฀of฀January฀1,฀2005฀and฀January฀3,฀
2004,฀ and฀ the฀ related฀ consolidated฀ statements฀ of฀ operations,฀ stockholders’฀ equity,฀ and฀ cash฀ flows฀ for฀ each฀ of฀ the฀ three฀
years฀in฀the฀period฀ended฀January฀1,฀2005฀and฀our฀report฀dated฀March฀14,฀2005฀expressed฀an฀unqualified฀opinion฀on฀those฀
financial฀statements.
McLean,฀Virginia
March฀14,฀2005
Report฀of฀Independent฀Registered฀Public฀Accounting฀Firm