Redbox 2004 Annual Report Download - page 36

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Stockholders
Coinstar Inc.:
We have audited management’s assessment, included in the accompanying Management’s report on internal control
over financial reporting appearing under Item 9A that Coinstar, Inc. and subsidiaries (the “Company”) maintained effective
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). The
Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting. Our responsibility is to express an opinion on
management’s assessment and an opinion on the effectiveness of the Company’s internal control over financial reporting
based on our audit.
We conducted our audit 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 effective
internal control over financial reporting was maintained in all material respects. Our audit included 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 considered necessary in
the circumstances. We believe that our audit provides a reasonable basis for our opinion.
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 internal control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide 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 (3) 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.
Because of its inherent limitations, internal control over financial 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 compliance with the policies or procedures may
deteriorate.
In our opinion, management’s assessment that the Company’s maintained effective internal control over financial
reporting as of December 31, 2004, is fairly stated, in all material respects, based on criteria established in Internal Control—
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Also, 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 Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
The Company acquired ACMI Holdings, Inc. and its subsidiary American Coin Merchandising, Inc. (collectively
referred to as ACMI) during 2004, and management excluded from its assessment of the effectiveness of the Company’s
internal control over financial reporting as of December 31, 2004, ACMI’s internal control over financial reporting associated
with total assets of $263.7 million and total revenues of $111.1 million included in the consolidated financial statements of
the Company as of and for the year ended December 31, 2004. Our audit of internal control over financial reporting of the
Company also excluded an evaluation of the internal control over financial reporting of ACMI.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States), the consolidated balance sheets of the Company as of December 31, 2004 and 2003, and the related consolidated
statements of operations, stockholders’ equity and cash flows for each of the years then ended, and our report, dated February
28, 2005, expressed an unqualified opinion on those consolidated financial statements.
KPMG LLP
Seattle, WA
February 28, 2005