Advance Auto Parts 2005 Annual Report Download - page 63

Advance Auto Parts I Annual Report 2005 I 61
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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 December 31, 2005, based
on criteria established in Internal Control—Integrated
Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission. As
described in Management’s Report on Internal
Control over Financial Reporting, management
excluded from their assessment the internal control
over financial reporting at Autopart International,
Inc., which was acquired on September 14, 2005 and
whose financial statements reflect total assets and
revenues constituting four and one percent, respec-
tively, of the related consolidated financial statement
amounts as of and for the year ended December 31,
2005. Accordingly, our audit did not include the
internal control over financial reporting at Autopart
International, Inc. The Company’s management is
responsible for maintaining effective internal control
over financial reporting and for its assessment of the
effectiveness 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 inter-
nal 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 company’s principal executive
and principal financial officers, or persons perform-
ing similar functions, and effected by the company’s
board of directors, management, and other personnel
to provide reasonable assurance regarding the relia-
bility of financial reporting and the preparation of
financial statements for external purposes in accor-
dance with generally accepted accounting principles.
A company’s internal control over financial report-
ing includes those policies and procedures that (1)
pertain to the maintenance of records that, in reason-
able detail, accurately and fairly reflect the transac-
tions 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 possi-
bility 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 compli-
ance with the policies or procedures may deteriorate.
In our opinion, management’s assessment that the
Company maintained effective internal control over
financial reporting as of December 31, 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 materi-
al respects, effective internal control over financial
reporting as of December 31, 2005, based on the cri-
teria 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 stan-
dards of the Public Company Accounting Oversight
Board (United States), the consolidated balance sheets
of Advance Auto Parts, Inc. and subsidiaries as of
December 31, 2005 and January 1, 2005, and the
related consolidated statements of operations, changes
in stockholders’ equity, and cash flows for each of the
three years in the period ended December 31, 2005
and our report dated March 14, 2006 expressed an
unqualified opinion on those financial statements.
McLean, Virginia
March 14, 2006