North Face 2004 Annual Report Download - page 37

69vf corporation 2004 Annual Report
To the Board of Directors and Stockholders of VF Corporation
We have completed an integrated audit of VF Corporation’s January 1, 2005 consolidated financial statements
and of its internal control over financial reporting as of January 1, 2005 and audits of its January 3, 2004 and
January 4, 2003 consolidated financial statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Our opinions, based on our audits, are presented below.
Consolidated financial statements
In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of
income, comprehensive income, cash flows and common stockholders’ equity present fairly, in all material
respects, the financial position of VF Corporation and its subsidiaries at January 1, 2005 and January 3, 2004,
and the results of their operations and their cash flows for each of the three fiscal years ended January 1, 2005,
January 3, 2004 and January 4, 2003 in conformity with accounting principles generally accepted in the United
States of America. These financial statements are the responsibility of the Company’s management. Our respon-
sibility is to express an opinion on these financial statements based on our audits. We conducted our audits
of these statements 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 of financial statements
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
VF’s management is responsible for establishing and maintaining adequate internal control over financial
reporting, as defined in Exchange Act Rule 13a-15(f ). VF’s management conducted an assessment of VF’s
internal control over financial reporting based on the framework described in Internal Control - Integrated
Framework, issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based
on this assessment, VF’s management has determined that VF’s internal control over financial reporting was
effective as of January 1, 2005.
Management’s assessment of the effectiveness of VF’s internal control over financial reporting as of January 1,
2005 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as
stated in their report which is included herein.
Internal control over financial reporting
Also, in our opinion, management’s assessment, included in the accompanying Management’s Report on
Internal Control Over Financial Reporting, appearing on page 68 of the 2004 Annual Report to Stockholders,
that the Company maintained effective internal control over financial reporting as of January 1, 2005 based
on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO), is fairly stated, in all material respects, based on those
criteria. Furthermore, in our opinion, the Company maintained, in all material respects, effective internal
control over financial reporting as of January 1, 2005, based on criteria established in Internal Control -
Integrated Framework issued by the COSO. 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 opinions on management’s assessment and on the
effectiveness of the Company’s internal control over financial reporting based on our audit. We conducted
our audit of internal control over financial reporting 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. An audit of internal control over financial reporting includes 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 consider
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 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 (i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) 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 (iii) 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 misstate-
ments. 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.
Greensboro, North Carolina
PricewaterhouseCoopers LLP March 7, 2005
report of independent registered public accounting firm
management’s report on internal control over financial reporting