World Fuel Services 2005 Annual Report Download - page 51

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only in accordance with authorizations of management and directors of the company; and (iii) 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.
A material weakness is a control deficiency, or combination of control deficiencies, that results in more than
a remote likelihood that a material misstatement of the annual or interim financial statements will not be
prevented or detected. The following material weakness has been identified and included in management’s
assessment: As of December 31, 2005, the Company did not maintain effective controls over the accounting and
financial reporting of our derivative program. Specifically, the Company did not maintain effective controls to
ensure the accuracy, presentation and disclosure of our accounting for derivative instruments. This control
deficiency resulted in an adjustment to the third quarter 2005 consolidated statements within cost of good sold,
other comprehensive income, prepaid and other current assets and accrued expenses and other current liabilities.
Additionally, this control deficiency could result in a misstatement of derivative instruments that could result in a
material misstatement to the annual or interim financial statements that would not be prevented or detected.
Accordingly, management has determined that this control deficiency constitutes a material weakness.
This material weakness was considered in determining the nature, timing, and extent of audit tests applied in
our audit of the 2005 consolidated financial statements, and our opinion regarding the effectiveness of the
Company’s internal control over financial reporting does not affect our opinion on those consolidated financial
statements.
In our opinion, management’s assessment that World Fuel Services Corporation did not maintain effective
internal control over financial reporting as of December 31, 2005, is fairly stated, in all material respects, based
on criteria established in Internal Control—Integrated Framework issued by the COSO. Also, in our opinion,
because of the effect of the material weakness described above on the achievement of the objectives of the
control criteria, World Fuel Services Corporation has not maintained effective internal control over financial
reporting as of December 31, 2005, based on criteria established in Internal Control—Integrated Framework
issued by the COSO.
/s/ PricewaterhouseCoopers LLP
Miami, Florida
March 16, 2006
37