Audiovox 2005 Annual Report Download - page 49

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CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING
To address and remediate a certain material weakness in the Company's internal
control over financial reporting at November 30, 2004, that continued to exist
through August 31, 2005; the Company made certain changes to its internal
controls during the most recently completed fiscal fourth quarter ended November
30, 2005 covered by this report, that has materially affected, or is reasonably
likely to materially affect the Company's internal controls over financial
reporting. The Company implemented the following measures to change or enhance
the design and operating effectiveness of its internal controls to remediate a
material weakness that was identified in the prior year (at November 30, 2004)
evaluation that required additional remediation:
1. The Company enhanced the design of the information technology general
security controls in connection with user access conflicts and segregation
of duties related to certain applications and business processes to ensure
there is appropriate authorization, execution, monitoring and review by
independent individuals by restricting access to data and applications.
The Company believes that the above measure has effectively addressed this
material weakness that was identified in the prior year (at November 30, 2004)
and, accordingly, completes the remediation plan for all prior year material
weaknesses.
ITEM 9B − OTHER INFORMATION
Not Applicable
PART III
The information required by Item 10 (Directors and Executive Officers
of the Registrant), Item 11 (Executive Compensation), Item 12 (Security
Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters), Item 13 (Certain Relationships and Related Transactions) and Item 14
(Principal Accounting Fees and Services) of Form 10−K, will be included in our
Proxy Statement for the 2005 Annual meeting of Stockholders, which will be filed
by March 30, 2006, and such information is incorporated herein by reference.
PART IV
ITEM 15−EXHIBITS, FINANCIAL STATEMENT SCHEDULES
(1 and 2) Financial Statements and Financial Statement Schedules. See Index to
Consolidated Financial Statements attached hereto.
(3) Exhibits. The following is a list of exhibits:
44