O'Reilly Auto Parts 2004 Annual Report Download - page 35

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The management of O’Reilly Automotive, Inc. and Subsidiaries (the Company) is responsible for establishing and maintaining adequate internal
control over financial reporting. Our internal control system is designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States.
Internal control over financial reporting includes all policies and procedures that:
■pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
of the Company;
■provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP,
and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the
Company; and
■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.
All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can
provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness
to future periods are subject to the risk. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of
compliance with policies or procedures.
Under the supervision and with the participation of our management, including our principal Executive Officer and our principal Financial Officer,
we assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2004. In making this assessment, we used
the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control – Integrated
Framework. Based on our assessment, we believe that as of December 31, 2004, the Company’s internal control over financial reporting is effective
based on those criteria.
Ernst & Young LLP, Independent Registered Public Accounting Firm, that audited the Company’s consolidated financial statements has issued an attes-
tation report on management’s assessment of the Company’s internal control over financial reporting, as stated in their report which is included herein.
Greg Henslee Jim Batten
Chief Executive Officer & Executive Vice President of Finance &
Co-President Chief Financial Officer
2004 ANNUAL REPORT 33
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING