Audiovox 2010 Annual Report Download - page 45

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Board of Directors and Stockholders
Audiovox Corporation
We have audited Audiovox Corporation (a Delaware corporation) and subsidiaries’ (the “Company”) internal control over financial
reporting as of February 28, 2010, 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, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to
express an opinion on the Company’s internal control over financial reporting based on our audit. Our audit of, and opinion on, the
Company’s internal control over financial reporting does not include internal control over financial reporting of Schwaiger GmbH
(“Schwaiger”) and Invision Automobile Systems, Inc. (“Invision”), wholly owned subsidiaries, whose financial statements in the
aggregate reflect total assets and revenues constituting 9 and 3 percent, respectively, of the related consolidated financial statement
amounts as of and for the year ended February 28, 2010. As indicated in Management’s Report, Schwaiger and Invision were acquired
during the year ended February 28, 2010 and therefore, management’s assertion on the effectiveness of the Company’s internal control
over financial reporting excluded internal control over financial reporting of Schwaiger and Invision.
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, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of
internal control based on the assessed risk, 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, Audiovox Corporation and subsidiaries maintained, in all material respects, effective internal control over financial
reporting as of February 28, 2010, based on criteria established in Internal Control – Integrated Framework issued by COSO.
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, 2010 and 2009, and the related consolidated
statements of operations, stockholders’ equity and comprehensive income (loss), and cash flows for each of the three years in the
period ended February 28, 2010, and our report dated May 14, 2010 expressed an unqualified opinion thereon.
/s/ GRANT THORNTON LLP
Melville, New York
May 14, 2010
28
Source: AUDIOVOX CORP, 10-K, May 14, 2010 Powered by Morningstar® Document Research℠