Napa Auto Parts 2002 Annual Report Download - page 26

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Genuine Parts Company
We have prepared the accompanying consolidated financial
statements and related information included herein for the
years ended December 31, 2002, 2001 and 2000. The
opinion of Ernst & Young LLP, the Company’s independent
auditors, on those financial statements is included herein.
The primary responsibility for the integrity of the financial infor-
mation included in this annual report rests with management.
Such information was prepared in accordance with generally
accepted accounting principles appropriate in the circum-
stances based on our best estimates and judgements and
giving due consideration to materiality.
Genuine Parts Company maintains internal accounting
control
systems which are adequate to provide reasonable assurance
that assets are safeguarded from loss or unauthorized use
and which produce records adequate for preparation of finan-
cial information. The system and controls and compliance
therewith are reviewed by an extensive program of internal
audits and by our independent auditors. There are limits inher-
ent in all systems of internal accounting control based on the
recognition that the cost of such a system should not exceed
the benefits to be derived. We believe the Company’s system
provides this appropriate balance.
The Audit Committee of Genuine Parts Company’s Board of
Directors is responsible for reviewing and monitoring the
Company’s financial reports and accounting practices to
ascertain that they are within acceptable limits of sound prac-
tice in such matters. The membership of the Committee
consists of non-employee Directors. At periodic meetings, the
Audit Committee discusses audit and financial reporting mat-
ters and the internal audit function with representatives of
financial management and with representatives from Ernst &
Young LLP.
JERRY W. NIX
Executive Vice President -
Finance and Chief Financial Officer
February 4, 2003
Board of Directors
Genuine Parts Company
We have audited the accompanying consolidated balance
sheets of Genuine Parts Company and subsidiaries as of
December 31, 2002 and 2001, and the related consolidated
statements of income, shareholders’ equity, and cash flows for
each of the three years in the period ended December 31,
2002. 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 audits.
We conducted our audits in accordance with auditing stan-
dards 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 evalu-
ating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the consolidated finan-
cial position of Genuine Parts Company and subsidiaries at
December 31, 2002 and 2001, and the consolidated results
of their operations and their cash flows for each of the three
years in the period ended December 31, 2002, in conformity
with accounting principles generally accepted in the United
States.
As discussed in Note 2, effective January 1, 2002, the
Company adopted Statement of Financial Accounting
Standards No. 142, Goodwill and Other Intangible Assets.
February 4, 2003
Atlanta, Georgia
report of management
report of independent auditors