Napa Auto Parts 2006 Annual Report Download - page 27

25
The Board of Directors and Shareholders
of Genuine Parts Company
We have audited management’s assessment, included in the
accompanying Report of Management, that Genuine Parts Company
maintained effective internal control over nancial reporting as
of December 31, 2006, based on criteria established in Internal
Control—Integrated Framework issued by the Committee of Spon-
soring Organizations of the Treadway Commission (the COSO
criteria). Genuine Parts Company’s management is responsible
for maintaining effective internal control over nancial reporting
and for its assessment of the effectiveness of internal control over
nancial 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 nancial 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
nancial reporting was maintained in all material respects. Our audit
included obtaining an understanding of internal control over nancial
reporting, evaluating management’s assessment, testing and evalu-
ating 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 opinion.
A company’s internal control over nancial reporting is a process
designed to provide reasonable assurance regarding the reliability of
nancial reporting and the preparation of nancial statements for
external purposes in accordance with generally accepted accounting
principles. A company’s internal control over nancial reporting in-
cludes those policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly reect the
transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as
necessary to permit preparation of nancial 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 nancial statements.
Because of its inherent limitations, internal control over nancial
reporting may not prevent or detect misstatements. Also, projections
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 Com-
pany maintained effective internal control over nancial reporting as of
December 31, 2006, is fairly stated, in all material respects, based on
the COSO criteria. Also, in our opinion, Genuine Parts Company main-
tained, in all material respects, effective internal control over nancial
reporting as of December 31, 2006, 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 as of December 31, 2006
and 2005, and the related consolidated statements of income, share-
holders’ equity, and cash ows for each of the three years in the period
ended December 31, 2006 of Genuine Parts Company and our report
dated February 26, 2007 expressed an unqualied opinion thereon.
Atlanta, Georgia
February 26, 2007
Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting
The Board of Directors and Shareholders
of Genuine Parts Company
We have audited the accompanying consolidated balance sheets of
Genuine Parts Company and subsidiaries as of December 31, 2006 and
2005, and the related consolidated statements of income, shareholders’
equity, and cash ows for each of the three years in the period ended
December 31, 2006. These nancial statements are the responsibility
of the Company’s management. Our responsibility is to express an
opinion on these nancial 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 reason-
able assurance about whether the nancial statements are free of
material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the nancial
statements. An audit also includes assessing the accounting principles
used and signicant estimates made by management, as well as
evaluating the overall nancial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the nancial statements referred to above present
fairly, in all material respects, the consolidated nancial position of
Genuine Parts Company and subsidiaries at December 31, 2006
and 2005, and the consolidated results of their operations and
their cash ows for each of the three years in the period ended
December 31, 2006, in conformity with U.S. generally accepted
accounting principles.
As discussed in Note 1, effective December 31, 2006, the Company
adopted Statement of Financial Accounting Standards No. 158,
Employers’ Accounting for Dened Benet Pension and Other
Postretirement Plans.
We also have audited, in accordance with the standards of the Public
Company Accounting Oversight Board (United States), the effective-
ness of Genuine Parts Company’s internal control over nancial
reporting as of December 31, 2006, based on criteria established in
Internal Control-Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission and our report
dated February 26, 2007 expressed an unqualied opinion thereon.
Atlanta, Georgia
February 26, 2007
Report of Independent Registered Public Accounting Firm on the Financial Statements