Digital River 2002 Annual Report Download - page 47

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41
Report of Independent Auditors
Board of Directors and Stockholders
Digital River, Inc.
We have audited the accompanying consolidated balance sheet of Digital River, Inc. and subsidiaries as of December 31, 2002 and the related
consolidated statements of operations, stockholders’ equity, and cash flows for the year then ended. These financial statements are the
responsibility of the Company’ s management. Our responsibility is to express an opinion on these financial statements based on our audit. The
consolidated financial statements of Digital River, Inc. and subsidiaries as of December 31, 2001 and 2000, and for the two years then ended,
were audited by other auditors who have ceased operations and whose reports dated January 28, 2002 expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the 2002 financial statements referred to above present fairly, in all material respects, the consolidated financial position of
Digital River, Inc. and subsidiaries as of December 31, 2002 and the consolidated results of their operations and their cash flows for the year
then ended in conformity with accounting principles generally accepted in the United States.
As discussed above, the consolidated financial statements of Digital River, Inc. and subsidiaries as of December 31, 2001 and 2000, and for the
two years then ended, were audited by other auditors who have ceased operations. As described in Note 2, these consolidated financial
statements have been revised to include the transitional disclosures required by Financial Accounting Standard No. 142, “Goodwill and other
Intangible Assets”, which was adopted by the Company as of January 1, 2002. We have audited the disclosures in Note 2 and, in our opinion,
the disclosures for 2001 and 2000 in Note 2 are appropriate. However, we were not engaged to audit, review, or apply any procedures to the
2001 and 2000 consolidated financial statements of the Company other than with respect to such disclosures and, accordingly, we do not express
an opinion or any other form of assurance on the 2001 and 2000 consolidated financial statements taken as a whole.
/s/ Ernst & Young LLP
Minneapolis, Minnesota
January 28, 2003