Advance Auto Parts 2004 Annual Report Download - page 59

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Advance Auto Parts, Inc. and Subsidiaries
Supplement to 2004 Annual Report
Management’s 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 Company’s internal control over financial reporting is
a process designed under the supervision of the Company’s principal executive officer and principal financial officer to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s
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 Company’s assets that could have a material effect on the financial statements.
As of January 1, 2005, management assessed the effectiveness of the Company’s 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 Company’s 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 Company’s independent registered public accounting firm who audited the Company’s
consolidated financial statements, has issued a report on management’s assessment of the Company’s internal control
over financial reporting as of January 1, 2005 and is included in the accompanying 2004 Annual Report.