Napa Auto Parts 2005 Annual Report Download - page 24

22
Board of Directors
Genuine Parts Company
Wehave audited management’s assessment, included in the
accompanying Report of Management, that Genuine Parts
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 (the
COSO criteria). Genuine Parts Company’s management is responsi-
ble for maintaining effective internal control over financial report-
ing 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.
Weconducted 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 con-
trol over financial reporting, evaluating management’s assess-
ment, testing and evaluating the design and operating effective-
ness 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 opinion.
Acompany’sinternal control over financial reporting is a process
designed 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 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.
Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements. Also, projec-
tions of any evaluation of effectiveness to future periods are subject
to the risk that 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 Genuine Parts
Company maintained effective internal control over financial
reporting as of December 31, 2005, is fairly stated, in all material
respects, based on the COSO criteria. Also, in our opinion, Genuine
Parts Company maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2005,
based on the COSO criteria.
We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States),
the consolidated balance sheets of Genuine Parts Company and
subsidiaries as of December 31, 2005 and 2004, and the related
consolidated statements of income, shareholders’ equity,and
cash flows for each of the three years in the period ended
December 31, 2005, and our report dated March 1, 2006 expressed
an unqualified opinion thereon.
March 1, 2006
Atlanta, Georgia
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Board of Directors
Genuine Parts Company
We have audited the accompanying consolidated balance sheets
of Genuine Parts Company and subsidiaries as of December 31,
2005 and 2004, and the related consolidated statements of income,
shareholders’ equity,and cash flows for each of the three years in
the period ended December 31, 2005. These financial statements
are the responsibility of the Company’s management. Our responsi-
bility is to express an opinion on these financial statements based
on our audits.
We conducted our audits 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 the financial statements are
free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly,in all material respects, the consolidated financial position of
Genuine Parts Company and subsidiaries at December 31, 2005 and
2004, and the consolidated results of their operations and their cash
flows for each of the three years in the period ended December 31,
2005, in conformity with U.S. generally accepted accounting principles.
As discussed in Note 1, effective January 1, 2003, the Company
adopted Emerging Issues Task Force Issue No. 02-16, Accounting by
aCustomer (Including a Reseller) for Certain Consideration
Received from a Vendor.
We also have audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the
effectiveness of Genuine Parts Company’s 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 and our report dated March 1, 2006, expressed an
unqualified opinion thereon.
March 1, 2006
Atlanta, Georgia
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON THE FINANCIAL STATEMENTS