Papa Johns 2003 Annual Report Download - page 70

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Report of Management
The consolidated financial statements appearing in this Annual Report have been prepared by management, which is
responsible for their preparation, integrity and fair presentation. The statements have been prepared in accordance
with accounting principles generally accepted in the United States and necessarily include some amounts that are
based on management’s best estimates and judgments.
Management is responsible for the system of internal controls over financial reporting at Papa John’s International,
Inc. and its subsidiaries, a system designed to provide reasonable assurance regarding the preparation of reliable
published financial statements. This system is augmented by written policies and procedures and the selection and
training of qualified personnel. Management believes that its system of internal controls over financial reporting
provides reasonable assurance that the financial records are reliable for preparing financial statements.
The Audit Committee of the Board of Directors meets with the independent auditors and management periodically to
discuss internal controls over financial reporting and other auditing and financial reporting matters. The Audit
Committee reviews with the independent auditors the scope and results of the audit effort. The Audit Committee also
meets with the independent auditors without management present to ensure that the independent auditors have free
access to the Committee. The independent auditors are recommended by the Audit Committee and selected by the
Board of Directors. Based upon their audit of the consolidated financial statements, the independent auditors, Ernst
& Young LLP, have issued their Report of Independent Auditors, which follows.
Report of Independent Auditors
Board of Directors and Stockholders
Papa John’s International, Inc.
We have audited the accompanying consolidated balance sheets of Papa John’s International, Inc. and subsidiaries as
of December 28, 2003 and December 29, 2002, and the related consolidated statements of income, stockholders’
equity and cash flows for each of the three years in the period ended December 28, 2003. Our audits also included
the financial statement schedule listed in the Index at Item 15(a). These financial statements and schedule are the
responsibility of the Company’s management. Our responsibility is to express an opinion on these financial
statements and schedule based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the 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 Papa John’s International, Inc. and subsidiaries at December 28, 2003 and December 29, 2002,
and the consolidated results of their operations and their cash flows for each of the three years in the period ended
December 28, 2003, in conformity with accounting principles generally accepted in the United States. Also, in our
opinion, the related financial statement schedule when considered in relation to the basic financial statements taken
as a whole, presents fairly in all material respects, the information set forth therein.
As discussed in Note 2 to the consolidated financial statements, in 2003, Papa John’s International, Inc. changed its
method of accounting for certain financial instruments with characteristics of both liabilities and equity and certain
variable interest entities, and in 2002, Papa John’s International, Inc. changed its methods of accounting for goodwill
and other intangible assets and stock-based employee compensation.
/s/ Ernst & Young LLP
Louisville, Kentucky
February 23, 2004, except for Note 16,
as to which the date is March 1, 2004