Audiovox 2006 Annual Report Download - page 36

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Stockholders
Audiovox Corporation
We have audited management’s assessment, included in the accompanying Management’s Report on
Internal Control over Financial Reporting, that Audiovox Corporation (a Delaware corporation) and
subsidiaries (the ‘‘Company’’) maintained effective internal control over financial reporting as of
February 28, 2007, based on criteria established in Internal Control — Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria).
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 Audiovox Corporation and subsidiaries maintained
effective internal control over financial reporting as of February 28, 2007, is fairly stated, in all
material respects, based on the COSO criteria. Also, in our opinion, Audiovox Corporation and
subsidiaries maintained, in all material respects, effective internal control over financial reporting as of
February 28, 2007, based on the COSO criteria.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight
Board (United States), the consolidated balance sheets of Audiovox Corporation and subsidiaries as
of February 28, 2007 and 2006, and the related consolidated statements of operations, stockholders’
equity and comprehensive income (loss) and cash flows for the year ended February 28, 2007, three
months ended February 28, 2006 and years ended November 30, 2005 and 2004, and our report dated
May 11, 2007 expressed an unqualified opinion thereon.
GRANT THORNTON LLP
Melville, New York
May 11, 2007
35