Audiovox 2004 Annual Report Download - page 108

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Item 9−Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure
Not Applicable
Item 9a−Controls and Procedures
Disclosure Controls and Procedures
Audiovox Corporation (the "Company") maintains disclosure controls and
procedures that are designed to ensure that information required to be disclosed
in the reports that the Company files or submits under the Securities and
Exchange Act is recorded, processed, summarized, and reported within the time
periods specified in the SEC's rules and regulations, and that such information
is accumulated and communicated to the Company's management, including its Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow timely
decisions regarding required financial disclosures.
As of the end of the period covered by this report, the Company carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Chief Executive Officer and Chief Financial Officer,
of the effectiveness of the design and operation of our disclosure controls and
procedures pursuant to the Securities and Exchange Act Rule 13a−15. Based upon
this evaluation as of November 30, 2004, the Chief Executive Officer and Chief
Financial Officer concluded that our disclosure controls and procedures were not
effective for the reasons discussed below related to the weaknesses in our
internal control over financial reporting. To address the control weaknesses
described below, the Company performed additional analysis and performed other
procedures to ensure the consolidated financial statements are prepared in
accordance with generally accepted accounting principles. Accordingly,
management believes that the consolidated financial statements included in this
Annual Report on Form 10−K, fairly presents, in all material respects our
financial condition, results of operations and cash flows for the periods
presented.
Management's Report on Internal Control Over Financial Reporting
The Company's management is responsible for establishing and maintaining
adequate internal control over financial reporting, as such term is defined in
the Securities and Exchange Act Rules 13a−15(f) and 15d− 15(f). The 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 and includes those policies and
procedures that:
o Pertain to the maintenance of records that in reasonable detail accurately
and fairly reflect the transactions and dispositions of the assets of the
Company;
o 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
o Provide reasonable assurance regarding prevention and timely detection of
unauthorized acquisition, use or disposition of the Company's assets that
could have a material effect on the financial statements.
105