Advance Auto Parts 2006 Annual Report Download - page 64

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MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING
Management of Advance Auto Parts, Inc. and 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 accounting principles generally accepted in the United States of America,
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 December 30, 2006, 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 December 30, 2006 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 an attestation report on management’s assessment of the Company’s
internal control over financial reporting as of December 30, 2006 which is included on page F-3 herein.
Michael N. Coppola Michael O. Moore
Chairman, President and Chief Executive Officer Executive Vice President, Chief Financial Officer
February 28, 2007
F-1