Pep Boys 2006 Annual Report Download - page 70

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31
ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
The Pep Boys—Manny, Moe & Jack
Philadelphia, Pennsylvania
We have audited the accompanying consolidated balance sheets of The Pep Boys—Manny, Moe &
Jack and subsidiaries (the “Company”) as of February 3, 2007 and January 28, 2006, and the related
consolidated statements of operations, stockholders’ equity, and cash flows for each of the three years in
the period ended February 3, 2007. Our audits also included the financial statement schedule listed in the
Index at Item 15. These financial statements and financial statement schedule are the responsibility of the
Company’s management. Our responsibility is to express an opinion on the financial statements and
financial statement schedule 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, such consolidated financial statements present fairly, in all material respects, the
financial position of The Pep Boys—Manny, Moe & Jack and subsidiaries as of February 3, 2007 and
January 28, 2006, and the results of their operations and their cash flows for each of the three years in the
period ended February 3, 2007, in conformity with accounting principles generally accepted in the United
States of America. Also, in our opinion, such financial statement schedule, when considered in relation to
the basic consolidated financial statements taken as a whole, presents fairly in all material respects the
information set forth therein.
As discussed in Notes 1 and 12 to the consolidated financial statements, the Company adopted
Statement of Financial Accounting Standards (“SFAS”) No. 158, Employers’ Accounting for Defined Benefit
Pension and Other Postretirement Plans, SFAS No. 123 (revised 2004), Share-Based Payment, and Financial
Accounting Standards Board Interpretation No. 47, Accounting for Conditional Asset Retirement
Obligations, as of February 3, 2007, January 29, 2006, and January 28, 2006, respectively.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the effectiveness of the Company’s internal control over financial reporting as of
February 3, 2007, based on the criteria established in Internal Control—Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission and our report dated April 18, 2007
expressed an unqualified opinion on management’s assessment of the effectiveness of the Company’s
internal control over financial reporting and an unqualified opinion on the effectiveness of the Company’s
internal control over financial reporting.
Deloitte & Touche LLP
Philadelphia, Pennsylvania
April 18, 2007