Radio Shack 2004 Annual Report Download - page 35

To the Board of Directors and Stockholders
of RadioShack Corporation:
We have completed an integrated audit of RadioShack
Corporation’s 2004 consolidated financial statements and of
its internal control over financial reporting as of December 31,
2004 and audits of its 2003 and 2002 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 consolidated financial statements listed in
the accompanying index present fairly, in all material respects,
the financial position of RadioShack Corporation and its sub-
sidiaries (the “Company”) at December 31, 2004 and 2003,
and the results of their operations and their cash flows for
each of the three years in the period ended December 31,
2004 in conformity with accounting principles generally
accepted in the United States of America. These financial
statements are the responsibility of the Company’s manage-
ment. Our responsibility 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 finan-
cial statements are free of material misstatement. An audit of
financial statements includes examining, on a test basis, evi-
dence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and sig-
nificant estimates made by management and evaluating the
overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
Internal control over financial reporting
Also, in our opinion, management’s assessment, included
in Management’s Report on Internal Control Over Financial
Reporting appearing on page 32 of the Company’s Annual
Report to Stockholders, that the Company maintained effec-
tive internal control over financial reporting as of December
31, 2004 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 December 31, 2004, based
on criteria established in Internal Control – Integrated
Framework issued by the COSO. The Company’s manage-
ment is responsible for maintaining effective internal control
over financial reporting and for its assessment of the effec-
tiveness of internal control over financial reporting. Our
responsibility is to express opinions on management’s
assessment and on the effectiveness of the Company’s inter-
nal control over financial reporting based on our audit. We
conducted our audit of internal control over financial report-
ing 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 reason-
able 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 consid-
er 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 inter-
nal 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 transac-
tions and dispositions of the assets of the company; (ii) pro-
vide 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 assur-
ance 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 finan-
cial reporting may not prevent or detect misstatements. 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 com-
pliance with the policies or procedures may deteriorate.
PricewaterhouseCoopers LLP
Fort Worth, Texas
March 11, 2005
Report of Independent Registered Public Accounting Firm
RadioShack Corporation and Subsidiaries
33
AR2004