Pep Boys 2007 Annual Report Download - page 20

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12
Report of the Audit Committee of the Board of Directors
The Audit Committee reviews Pep Boys’ financial statements and makes recommendations to the full Board of
Directors on matters concerning the audits of Pep Boys’ books and records. Each committee member is
“independent” as defined by the listing standards of the New York Stock Exchange. Ms. Atkins (chair), Mr. Hotz,
Mr. Reid and Ms. Scaccetti are the current members of the Audit Committee. Both Ms. Atkins and Ms. Scaccetti
have been designated by the full Board as Audit Committee Financial Experts as defined by SEC regulations. A
written charter adopted by the full Board governs the activities of the Audit Committee. The charter is reviewed,
and when necessary revised, annually. A copy of the current Audit Committee Charter is attached hereto as
Appendix A.
Management has primary responsibility for Pep Boys’ internal accounting controls and financial reporting
process. The independent registered public accounting firm is responsible for performing an independent audit of
Pep Boys’ consolidated financial statements and internal control over financial reporting in accordance with
standards of the Public Company Accounting Oversight Board (United States) and to issue a report as a result of
such audit and to issue an attestation of management’s assertion of Pep Boys internal control over financial
reporting. The Audit Committee’s responsibility is to monitor and oversee these processes. The Audit Committee
serves as a focal point for communication among the Board of Directors, the independent registered public
accounting firm, management and Pep Boys’ internal audit function, as the respective duties of such groups, or their
constituent members, relate to Pep Boys’ financial accounting and reporting and to its internal controls.
In this context, the Audit Committee reviewed and discussed the audited consolidated financial statements with
management and the independent registered public accounting firm. These discussions included the matters
required to be discussed by Statement on Auditing Standards No. 61 (Communication with Audit Committees). The
Audit Committee also reviewed and discussed with management, the internal auditors and the independent
registered public accounting firm, management’s report, and the independent registered public accounting firm’s
attestation, on internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of
2002.
The Audit Committee also discussed with the independent registered public accounting firm its independence
from Pep Boys and its management, including the written disclosures submitted to the Audit Committee by the
independent registered public accounting firm as required by Independence Standards Board Standard No. 1
(Independence Discussions with Audit Committees).
Based upon the discussions and reviews referred to above, the Audit Committee recommended that the Board of
Directors include the audited consolidated financial statements and management’s report on internal control over
financial reporting in Pep Boys’ Annual Report on Form 10-K for the fiscal year ended February 2, 2008 filed with
the SEC.
This report is submitted by:
M. Shân Atkins
Robert H. Hotz
Irvin D. Reid
Jane Scaccetti
Proxy