Napa Auto Parts 2007 Annual Report Download - page 26

24
report฀of฀management
Genuine Parts Company
Management’s Responsibility for the Financial Statements
We have prepared the accompanying consolidated financial
statements and related information included herein for the years
ended December 31, 2007, 2006 and 2005. e opinion of Ernst
& Young LLP, the Company’s independent registered public
accounting firm, on those consolidated financial statements is
included herein. e primary responsibility for the integrity of
the financial information included in this annual report rests
with management. Such information was prepared in accordance
with generally accepted accounting principles appropriate in the
circumstances based on our best estimates and judgments and
giving due consideration to materiality.
Management’s Report on
Internal Control over Financial Reporting
e management of Genuine Parts Company and its subsidiaries
(the “Company”) is responsible for establishing and maintaining
adequate internal control over financial reporting as defined in
Rule 13a-15(f ) under the Securities Exchange Act of 1934.
e Company’s internal control system was designed to provide
reasonable assurance to the Company’s management and to the
board of directors regarding the preparation and fair presentation
of the Company’s published consolidated financial statements.
e Company’s internal control over financial reporting includes
those policies and procedures that:
i. pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and
dispositions of the assets of the Company;
ii. provide reasonable assurance that transactions are recorded
as necessary to permit preparation of financial statements in
accordance with U.S. 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
iii. 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.
All internal control systems, no matter how well designed, have
inherent limitations and may not prevent or detect misstate-
ments. erefore, even those systems determined to be effective
can provide only reasonable assurance with respect to financial
statement preparation and presentation. 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.
e Company’s management, including our Chief Executive
Officer and Chief Financial Officer, assessed the effectiveness
of the Company’s internal control over financial reporting as of
December 31, 2007.
In making this assessment, it used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Com-
mission (COSO) in “Internal Control-Integrated Framework.”
Based on this assessment, management concluded that, as of
December 31, 2007, the Company’s internal control over finan-
cial reporting was effective.
Ernst & Young LLP has issued an audit report on the Company’s
operating effectiveness of internal control over financial reporting
as of December 31, 2007. is report appears on page 25.
Audit Committee Responsibility
e 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 practice in such
matters. e membership of the Committee consists of non-
employee Directors. At periodic meetings, the Audit Committee
discusses audit and financial reporting matters and the internal
audit function with representatives of financial management and
with representatives from Ernst & Young LLP.
JERRY W. NIX
Vice Chairman and Chief Financial Officer
February 26, 2008